LVS posted a net loss of USD111.3 million globally in the fourth quarter of 2008, down from a profit of USD39.9 million a year earlier, as gambling markets continued to decline in Las Vegas and Macau.
The company reported that it lost USD0.27 per share on revenue of USD1.09 billion. This was despite a 4.3 percent rise in revenue compared to Q4 ’07.
“People in both of those markets [Las Vegas and Macau] are clearly spending less once they arrive,” said William Weidner, LVS’s President and Chief Operating Officer in comments to analysts during a conference call to discuss the results. This doesn’t quite square with the fact LVS’s operating revenue was actually up in Q4 ’08, though the company attributed much of the losses to increased costs related to net interest expense, depreciation and amortisation.
For the full fiscal year, which ended 31st December 2008, the company lost USD0.48 per share, or USD188.8 million, compared with earnings of USD0.33 cents per share, or USD116.7 million, in 2007. Revenue was USD4.39 billion for the whole of 2008, a 48.8 percent rise on 2007, when revenue generated came to USD2.95 billion.
The company said in the next financial year it hopes to save USD250 million in operational costs—half of it in Macau.
“While we cannot control consumer confidence or know when the market conditions will improve, what we can and will do is control our cost structure and focus all of our collective efforts on the disciplined execution plan,” added Mr Weidner.
