LVS Las Vegas Sands Corp

By Katherine Sayre 

Casino operator Las Vegas Sands Corp. reported a 51% drop in revenue, with Las Vegas shut down in response to the coronavirus pandemic and reopened casinos in Macau struggling to recover.

On Wednesday, Sands posted $1.78 billion in net revenue for the three months ended March 31, down from $3.6 billion at year earlier. The company had a net loss of $51 million for the quarter, compared with $744 million in net income a year earlier.

Casinos across the U.S. were shut down in mid-March in response to the pandemic, and it is unclear when the industry will be allowed to reopen. Sands' portfolio includes the Venetian on the Las Vegas Strip and resorts in Singapore and the Chinese territory of Macau, the world's largest gambling market.

"We are confident that travel and tourism spending in each of our markets, and around the world, will eventually recover," Chief Executive Sheldon Adelson, the company's biggest shareholder, said Wednesday.

Casinos in Macau were closed for two weeks in February, but business hasn't bounced back since they reopened. In March, industrywide gambling revenue in Macau was down nearly 80%, according to government data.

Sands China Ltd., the company's subsidiary in Macau, reported a net loss of $166 million for the first quarter, compared with $557 million in net income a year earlier. Sands China's total revenue declined 65% to $814 million. Las Vegas Sands has suspended its quarterly dividend program.

Robert Goldstein, president and chief operating officer of Sands, said casino business will return more quickly in Asia than in the U.S. as travel restrictions from China to Macau are lifted.

Marina Bay Sands in Singapore is closed until June 1 as part of the government's response to the pandemic.

Casino operations will include safety measures like gloves, masks and temperature checks, Mr. Goldstein said. In Hong Kong, people are out at restaurants and stores while taking health precautions, "and that's what I hope we can do in Las Vegas as well and adapt to the new environment," he said.

Nevada Gov. Steve Sisolak hasn't issued a date for when casinos will be allowed to reopen. Mr. Sisolak said this week that he will reopen the economy in phases.

Sands had a cash balance of $2.6 billion and total debt at $12.3 billion as of March 31. The company said it also has $3.9 billion available for borrowing.

Write to Katherine Sayre at katherine.sayre@wsj.com

(END) Dow Jones Newswires

April 22, 2020 19:01 ET (23:01 GMT)

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