Macau shortcomings dent Las Vegas Sands’ 2015 performance

Operating income declined 31% to $2.84bn, net income retracted by 34% to $2.39bn and income before income taxes was $2.62bn, down 32%.

The full-year results were partially hampered by the performance of the operator’s four Macau properties, which were hit by a 40% fall in operating income to $1.61bn, in a year where the Macau casino market suffered a second consecutive annual decline in gross revenue, this time descending 34% to approximately $28.91bn.

For the fourth quarter, casino revenue went down from $2.72bn to $2.16bn and operating income dropped from $1.02bn to $702m.

Sands chairman and CEO Sheldon Adelson said: “In Macao, notwithstanding an operating environment that remains challenging, we delivered $575.3m in adjusted property EBITDA across our Macao property portfolio during the quarter, our strongest quarterly performance of the year.”

Elsewhere this week, the Nevada Supreme Court heard the case of Sands versus businessman Richard Suen, as a dispute over the process which saw Sands gain the relevant licensing to move into Macau continues.

The case was first filed in 2004 and the dispute stemmed from Suen’s claim that he was entitled to 2% of Sands’ net income from Macau operations as he was promised if the operator received a Macau licence, which Sands denies.

Suen was awarded $43.8m in 2008 and another jury awarded Suen $70m in 2013, though the first award was overturned on a previous appeal.

The bill grows by $8,400 per day that it is unpaid.

Sands still argues that the case should be overturned and it has been submitted for decision.

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David Cook

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David Cook served as an editor and writer for Gambling Insider from 2018 to 2020, where he played a central role in shaping the publication’s editorial direction. He oversaw the creation and implementation of the broader editorial strategy for Gambling Insider and its related publications, managing the production of 30 print magazines annually while also contributing to the management of GamblingInsider.com and a weekly digital newsletter.

During his tenure, David led the publication’s largest editorial team to date, guiding its expansion and ensuring consistent, high-quality output across all channels. He also hosted and helped launch the GI Huddle podcast, a project he was proud to bring from concept to reality.

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