Las Vegas Sands Corp. (LVS:US), the casino company controlled by billionaire Sheldon Adelson, reported an 18 percent drop in profit, missing estimates as results from the company’s Singapore casino fell short.
Net income fell to $349.8 million, or 42 cents a share, from $424.9 million, or 44 cents, a year earlier, excluding preferred dividends, the Las Vegas-based company said yesterday in a statement. Profit of 46 cents, excluding items, trailed the 60-cent average estimate of 23 analysts compiled by Bloomberg. The company raised its quarterly dividend 40 percent.
Las Vegas Sands cited lower casino revenue in Singapore, the result of increased customer winnings and higher provisions for accounts receivable. That led to a 5.1 percent drop in adjusted property earnings before interest, taxes, depreciation and amortization, to $876.9 million.
Sales rose 12 percent to $2.71 billion, missing estimates of $2.89 billion. The company opened its fourth casino in Macau, the Sands Cotai Central, in April.
Las Vegas Sands rose 1 percent to $46.91 in extended trading yesterday. The shares were little changed at $46.46 at the close in New York and have advanced 8.7 percent this year.
The dividend increase, to 35 cents a share, takes effect in 2013, Las Vegas Sands said. The current 25-cent dividend is payable on Dec. 28 to shareholders as of Dec. 20.
The company is increasing its marketing efforts in Singapore, which accounted for 30 percent of earnings before interest, taxes, depreciation and amortization in the quarter. Those efforts include more casino sales representatives, aircraft to fly high-rollers, and shows, company executives said in a conference call.
Las Vegas Sands’ shopping malls in Asia are worth $9 billion to $10 billion, Adelson said on the call. The company will consider selling them after a footbridge in Cotai opens in December and after approvals are obtained for an 800,000-square- foot mall the company is building in Macau.
The 79-year-old executive said he expects the gambling tax rate in Madrid, where the company is considering a resort, to be lower than Singapore’s 15 percent. That would let the company be profitable at lower gambling volumes, he said.
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