A US recovery would be more “drastic and slower,” according to the company

Las Vegas Sands sees 51% revenue drop in Q1, predicts quick recovery in Asia

Shares of the company were up nearly 7% in after-hours trading as the company signaled a quick recovery in Macau (image), Singapore and China, where coronavirus-induced curbs are eased.
2020-04-23
Reading time 1:46 min
Mainly due to the COVID-19 pandemic impact, net loss attributable to Las Vegas Sands was $1 million in the quarter ended March 31, compared to a profit of $582 million a year ago. The company said health measures after reopenings will not be difficult to accept for local Singaporeans or Chinese.

Las Vegas Sands Corp. on Wednesday posted a first-quarter loss of $1 million, a 51.1% decline in revenue as the coronavirus hit consumer activity, but the casino operator struck an optimistic note as pent-up demand for gambling pointed to a speedy recovery in Asia.

Net revenue plunged 51.1% to $1.78 billion. Revenue from the company’s main casino business dropped by 55.8% to $1.18 billion in the first quarter. Net loss attributable to Las Vegas Sands was $1 million in the quarter ended March 31, compared to a profit of $582 million a year ago. 

Shares of the company were up nearly 7% in after-hours trading as the company signaled a quick recovery in Macau, Singapore and China, where coronavirus-induced curbs are eased, Reuters reports. The company expects gambling and visitation to pick up by late summer or early fall in Asia, given its past experience in dealing with the Severe Acute Respiratory Syndrome (SARS) epidemic and Swine Flu.

“We hear anecdotally that people are really frustrated and want to go back to gambling in casinos,” a company executive said on a post earnings call. “The idea of a mask or social distancing or thermometer checks will not be difficult for local Singaporeans or Chinese. They will accept it, they will deal with it.”

However, Las Vegas Sands said a U.S. recovery would be more “drastic and slower” but added it was seeing demand for group business in August and into the fall. The gambling industry, which thrives on air travel and large groups of people in close proximity, is one of the hardest hit as the world goes into lockdowns in its battle against the pandemic.

Liquidity during the coronavirus crisis remained a bright spot for Las Vegas Sands, with the company pointing to a strong balance sheet that would allow it to tap growth opportunities in new markets. 

The Nevada governor has ordered all casinos and other nonessential businesses in the state to close for 30 days beginning March 18. He extended that order until April 30, and last week said he has no specific date for when nonessential businesses might be allowed to reopen.

In March, gambling revenue fell 80% in Macau, the world’s biggest casino hub that accounts for more than 60% of the company’s revenue. The S&P 500 casinos and gaming index has lost 49% this year, compared to the 13.4% dip in the S&P 500.

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