Sands' Earnings Down

Extra costs related to the Las Vegas Sands' Jan. 18 opening of the $1.8 billion The Palazzo Resort Hotel Casino in Las Vegas and other construction projects in the works in Pennsylvania, Singapore and Macau had a negative impact on fourth-quarter earnings, according to the company.

Las Vegas Sands' net income was down 65 percent to $39.9 million in the fourth quarter of 2007, compared with $113.6 million in the same period in 2006. Lower than expected gambling earnings at the Venetian Macao on the Cotai Strip, which opened in August 2007, also contributed to the declines, even though its revenue, $500 million, accounted for close to half of the total quarterly revenue for the entire company.

Las Vegas Sands' 2007 annual net income was $116 million, compared with $442 million in 2006.

Wall Street wasn't happy with the news, and on Feb. 4, the day the earnings were released, the company's stock price dropped to $81.45, down $6.40, or 7.29 percent.

Regardless, the company remained upbeat. William Weidner, Las Vegas Sands' president and COO, said, “We are pleased with our fourth-quarter operating results, which reflect the steady execution of our global growth strategy.”

In other words, what's costing the company now may pay off in the long run. Las Vegas Sands has a few construction projects in the pipeline, including the nearly $4 billion Marina Bay Sands in Singapore, scheduled to open next year, and the $800 million Sands BethWorks, under construction in Bethlehem, Pa.

Another major project in the works, the Four Seasons Macao, adjacent to the Venetian Macao, is scheduled to open in June, according to the company.

“We have also advanced our master plan to develop a complementary trade-fair, convention and leisure destination on Hengqin Island, in Zhuhai of the People's Republic of China and adjacent to the Cotai Strip,” Weidner said.