U.S. casino giant Las Vegas Sands Corp. reported unaudited first-quarter financial results, which showed a 65.1% year-over-year decline in net profit of $814 million.
The Hong Kong-listed company said in an official filing (pdf) that the main reason for the business decline was the impact of the ongoing coronavirus pandemic, with its three-month net profit plunging nearly 130% year-on-year to a $166 million deficit.
Venetian Macao, Plaza Macao, Sands Macao and Paris Macao properties are currently in the process of converting the Sands Cotai Central concert hall to London Macao. Capital expenditures totaled $320 million in the first quarter, with net interest of about $130 million, down more than 7% year-on-year, but about 75% of them were spent in Macau, according to the operator’s documents.
Macau Casino saw net sales decline 68.9% year-over-year to $141 million in the January-March 2020 period as adjusted earnings before interest, tax, depreciation and amortization fell 101.8% to a $3 million deficit, the company explained. It was also near the worst on nearby Sands Macao, as the update showed quarterly revenue fell 54.6% to $69 million and 102.5% to a $1 million deficit.
Sands China also reported a 64.5% year-over-year decline in first-quarter net profit for Venice Macao to $315 million, while the chairman’s adjusted earnings before interest, tax, depreciation and amortization fell 86.4% to about $49 million.
Sands China Limited further reported that The Plaza Macao’s first-quarter net profit of $107 million, a 52.2% year-over-year decline, was primarily responsible for coronavirus-related factors, as related revenues from properties before interest, tax, depreciation and amortization fell 67.1% to a meager $28 million. Wrapping up the bad news, the operator detailed that Sands Cotai Central’s sales plunged 70.5% to $170 million in the first three months of the year, and the venue giant recorded no revenue.