Macau renovations to hurt Sands earnings

Bloomberg

Las Vegas Sands, the parent of Sands China (1928), said renovations at an entertainment center and a hotel in Macau will crimp results this year, sending the shares lower in extended trading.

Shares of Sands China edged down 0.84 percent in Hong Kong yesterday.

The Las Vegas-based firm reported first-quarter sales and profit that exceeded analysts' projections as Macau's casino industry continued its recovery from pandemic-related restrictions.

Sales grew 40 percent to US$2.96 billion, the company said, topping the US$2.93 billion average of estimates compiled by Bloomberg.

Adjusted earnings rose to 75 cents a share, ahead of Wall Street projections for 60 cents.

The casino and resort company closed its Cotai Arena in January for US$200 million (HK$1.56 billion) in renovations.

The property held 12 shows in the first quarter compared with 31 in the fourth quarter. Sands also plans to renovate its Londoner hotel, losing up to 600 rooms.

The renovations will mostly impact results this summer, the company said, with a return to normal business at the arena in November and the hotel by May 2025.

Sands is in the middle of a US$4.5 billion capital spending program in Macau, its biggest market, following the government's renewal of licenses there.

Revenue from the company's five Macau casinos rose 42 percent in the quarter, which was marked by the popular Chinese New Year holiday. Sales in Singapore, where Sands own one casino, rose 37 percent.

The company, which is controlled by the family of the late Sands founder Sheldon Adelson, bought back US$450 million of its shares during the period.

Chief executive Rob Goldstein said he was "disappointed" that a decision for three new New York City-area casinos may be delayed. The company has proposed a resort development for Long Island.