Las Vegas Sands falls as World Cup focus impacts Q2 results

Las Vegas Sands Corp. (LVS) slid during the postmarket session on Wednesday after the casino operator posted its second quarter earnings report.

Revenue dipped 0.9% year-over-year during the quarter to $3.15B to miss the consensus expectation. The focus on the World Cup and an unusually low hold in rolling play in Macau negatively impacted results. Operating income was $618M, compared to $783M in the prior year quarter. EPS came in at $0.59 vs. $0.76 consensus and $0.79 a year ago.

Consolidated adjusted property EBITDA was $1.12B vs. $1.31B consensus and $1.33B a year ago. Marina Bay Sands did the heavy lifting once again with $689M in adjusted property EBITDA.

Adjusted property EBITDA as a percentage of net revenue was 35.5% vs. 42.0% a year ago. The Marina Bay Sands had the best mark at 49.9%, followed by The Venetian Macau at 27.9%.

On the balance sheet, Las Vegas Sands (LVS) ended the quarter with unrestricted cash balances of $3.38B. As of June 30, total debt outstanding, net of deferred offering costs and original issue discounts, excluding finance leases, was $15.1B.

Las Vegas Sands (LVS) noted that capital expenditures during the quarter totaled $332M, including construction, development, and maintenance activities of $215M at Marina Bay Sands and $88M in Macao. The company bought back $787M worth of stock and increased the buyback authorization to $6.0B.

"We continued to execute our strategic objectives during the quarter in both Singapore and Macao while continuing to increase the return of capital to shareholders," stated CEO Patrick Dumont on the quarter. "Looking ahead, we remain confident that our people, our products, and our focus on delivering outstanding service, hospitality, and entertainment experiences to our customers will drive growth for the company and deliver strong returns to our shareholders in the years ahead," he added.

Shares of Las Vegas Sands (LVS) were down 6.6% in after-hours trading to $57.90 following the earnings release.