Sands China Ltd. (01928.HK), a unit of Las Vegas Sands Corp., has seen its operating profit in cash terms, or property value adjusted earnings before interest, tax, depreciation and amortization, slide about 40 percent in the first quarter ended March.
With the decline, the key financial performance indicator has fallen back to roughly the level prevailing more than two years ago, the Hong Kong Economic Journal reported Friday.
Analysts at JPMorgan & Chase were quoted as saying that Sands China’s performance was the worst compared to five other major casino operators in Macau.
The lackluster performance was mainly attributed to a 53.3 percent slump in VIP rolling chip turnover, which came in at US$21.09 billion.
The mass market also booked 20 percent less turnover at US$4.53 billion.
Following the weak results, JPMorgan has cut its share price target for Sands China by 3 percent and the company EBITDA forecast by 4 percent.
HSBC Securities Services, meanwhile, downgraded the casino operator to “sell” from “hold”.
Sheldon Adelson, chairman and chief executive of Las Vegas Sands, said the outlook for the Macau gaming market remains uncertain.
Macau is reviewing its casino policies, Adelson noted, but said he remains optimistic that the city will not try to curb mainland visitors as Hong Kong did.
Translation by Vey Wong
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