© Reuters. A Las Vegas Sands Corp. logo is pictured at the Japan IR EXPO in Yokohama, Japan, Jan. 29, 2020. REUTERS/Kim Kyung-hoon
By Doyinsola Oladipo
NEW YORK (Reuters) – Las Vegas Sands Corp.’s second-quarter revenue beat Wall Street estimates, benefiting from non-gaming programming in Macau as tourism rebounded from China’s relaxation of its anti-coronavirus policy, and team gaming reached another record high in Singapore.
The casino operator’s revenue rose to $2.5 billion in the second quarter from $1.05 billion a year earlier, beating analysts’ average estimate of $2.39 billion.
said Robert J. Las Vegas Sands (NYSE:) CEO said in a statement.
Casino operators based in Macau, located off the coast of China, are looking to boost margins by relying on non-gaming activities such as entertainment, retail and food to boost revenue as people still visit at levels below pre-pandemic levels.
Shares of the casino operator were down about 2.8% in trading after the bell.
The company told investors on a call that renewal disruptions in Singapore are affecting margins for the company at its only Singapore location, and air travel from China remains below pre-pandemic levels. The company operates 5 properties in Macau.
Las Vegas Sands has resumed paying its dividend and will pay 20 cents per common share, with the first dividend payout on August 16th.
There may be some disappointment that the dividend and share buybacks may be more balanced going forward when compared to pre-pandemic which was more focused on earnings, said Dan Wasiolek, an analyst at Morningstar.
The company earned an adjusted 41 cents per share in the quarter, missing average analyst expectations of 43 cents per share, according to Refinitiv data.