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NEW YORK — Casino operator Las Vegas Sands Corp. said Tuesday its first-quarter loss widened year-over-year as revenue stagnated and expenses rose, but the results were slightly better than Wall Street expected.
For the quarter that ended March 31, the Las Vegas-based company said it lost $87.7 million, or 14 cents per share, after paying dividends. A year ago, Las Vegas Sands lost $11.2 million, or 3 cents per share.
Excluding one-time items, the company earned 1 cent per share on revenue of $1.08 billion, roughly flat with the first quarter of 2008.
That topped expectations of analysts polled by Thomson Reuters, who forecast an adjusted loss of 2 cents on revenue of $1.06 billion.
Billionaire Chairman and Chief Executive Sheldon Adelson said the company increased its annual cost savings target to $470 million during the quarter from $250 million previously as it combined some costs for The Venetian Las Vegas and The Palazzo on The Strip.
The company's cost savings came from layoffs and other cuts to payroll, as well as from reductions in marketing and advertising expenses.
Pre-opening expenses, meanwhile, rose during the quarter, mostly for the Marina Bay Sands in Singapore, Sands Bethlehem in Bethlehem, Pa., to open later this month, and some resorts under development on Macau's Cotai Strip. Those costs totaled $44.9 million in the first quarter, up from $26.6 million a year earlier.
Depreciation and amortization expenses also rose, mostly related to opening The Palazzo and the Four Seasons Macao.
In an effort to bolster its liquidity, Las Vegas Sands is continuing to explore the sale of non-core assets, including units at the Four Seasons hotel in Macau and its retail malls. The company said it is also in talks with some parties interested in taking minority stakes in its Macau developments.
In Las Vegas, where rival casino operators have reported a jump in convention cancellations, Las Vegas Sands said its group bookings are showing a pulse.
"Our group business in 2010 and 2011 is now starting to improve as future bookings come in, and groups who have previously canceled for 2009 are booking future years," said Rob Goldstein, president of the Venetian Las Vegas and the Palazzo. "So the group segment, while facing challenges, certainly, in this environment, is very much alive and well and remains a cornerstone of our business strategy here in Las Vegas."
Las Vegas Sands said its total debt stood at $10.41 billion at the end of the quarter and the company has no significant maturities until May 2011.
In after-hours trading, the stock fell 31 cents, or 2.7 percent, to $11.03, having closed earlier up $1.84, or 19.4 percent, at $11.34. The stock has traded between $1.38 and $76.50 during the past 52 weeks.
