Sands looks to cut costs after record Macau losses
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Having posted its steepest operating and net losses since going public in 2004, Las Vegas Sands is looking to cut costs in Macau.
South China Morning Post reported that the casino developer booked a worse than expected net loss of US$136.5 million for the three months to December due to weaker casino revenue and rising interest payments at the Four Seasons Macao and CotaiJet ferry service.
It planned to cut costs in Macau by US$125 million a year.
Quoting the management, the report said a record 6.7 million people visited the Venetian Macao during the quarter and CotaiJet carried a record 770,000 ferry passengers between Hong Kong and Macau.
It said these gains were more than offset by lower revenue and soaring interest payments on its US$10.5 billion debt load.
“The good news is that, despite the current economic uncertainty, people are continuing to visit our properties in both Las Vegas and Macau in great numbers,” President and COO, William Weidner, was quoted saying.
“The bad news is that people in both of those markets are clearly spending less once they arrive.”
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