Casino operator Las Vegas Sands saw profits fall 15% in 2016 despite the Macau market’s rebound in the second half of the year.
Figures released Wednesday show Sands’ revenue rising 7.4% to $3.08b in the final three months of 2016, while adjusted earnings gained 6% to $1.12b and profits rose 9.2% to $509m, although the profit rise was largely attributable to $64m in favorable currency exchange.
For 2016 as a whole, revenue slipped 3.5% to $8.77b, operating income was down 12.2% to $2.5b and profit fell 15% to ‘only’ $1.67b. The company blamed the profit decline on lower revenue, opening expenses for the new Parisian Macao and “non-recurring legal costs,” including paying multiple seven-figure fines to US regulatory agencies and a reported payout of up to $100m to former Sands China CEO Steve Jacobs.
The Sands China operation in Macau continued to drive Sands’ results, reporting Q4 revenue up 12% to $1.66b while profit slipped 8% to $348m. Full year revenue was down 2.5% to $6.7b while profit slumped 16% to $1.22b.
