Las Vegas Sands Reports First Quarter Declines Despite Growth in the U.S.

The Las Vegas Sands released its first quarter earnings for 2016 to its investors, and, to little surprise, revenue operating income, and net income are all down when compared to the same period a year ago.

The company is the owner of Las Vegas strip casinos The Venetian and The Palazzo, the Sands Casino Resort Bethlehem, and several casino resorts in Macau, China, and Singapore, Philippines.

Net revenue for the group dropped a staggering 9.8 percent from $3.01 billion in the first quarter of 2015 to $2.72 billion in the first quarter of 2016. This is despite showing healthy gains for its U.S. holdings with net revenue from its Las Vegas properties increasing by 2.3 percent ($384.9 million Q1 2016 vs. $376.4 million Q1 2015) and net revenue from the Sands Bethlehem increasing by 8.6 percent ($138.7 million Q1 2016 vs. $127.7 million Q1 2015).

The picture becomes worse when looking at operating and net income, since fixed costs did not decline despite the fact that the revenue driving the company did.

Operating income for the group decreased by 17.6 percent from $711.1 million in the first three months of 2015 to $585.6 million in the first quarter of 2015. As was the case with revenue, the U.S. properties performed well, with the blame for the decline being on poorer performance …

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