One of the largest Casinos – Las Vegas Sands Casino – posted massive loss in the 2^nd quarter result. According to the company result report the loss amounts to $222.2 million or 34 cents per share.

Main reasons of this loss by Las Vegas Sands Casino are:

1. Lower revenue
2. Drop in proceed from Sales from one of the center in Palazzo Resort.

Worldwide Scenario of Las Vegas Sands Casino

Las Vegas Sands Casino has also lost revenue in their worldwide business too. Revenue loss was estimated to be around $1.06 billion in the 2^nd quarter. In fact, the decrease of revenue in the last quarter in terms of percentage is 4.8%.

Las Vegas Sands Casino in Asia is still going strong in spite of the general loss worldwide. If we look at the casino in Chinese Macau then we will witness a positive cash flow.

Not only this, two well known resorts of Las Vegas Sands Casino – Palazzo and Venetian – posted result of positive cash flow.

Las Vegas Sands Casino massive loss scenario – How & Why?

Scenario:

Las Vegas Sands Casino has posted loss on all fronts – Revenue, Net Income and Net Income per Share.

Revenue loss in 2^nd quarter 2009 = $1.06 billion

Net income loss in 2^nd quarter 2009 = $222.2 million

Net income per share in 2^nd quarter 2009 = 34 cents

Concerns, Million $$$ Lawsuits of Las Vegas Sands Casino & 2^nd Q Losses:

Las Vegas Sands Casino has settled many lawsuits during the 2^nd quarter. One of them is a major one involving millions of dollars (actual amount undisclosed) where they owed to 3 businessmen who helped them to set up their casino in Macau.

In addition, there is a non cash impairment loss amounting to $151.2 million.

Las Vegas Sands Casino’s Mall businesses were not able to meet the projections. It is mainly due to depressed consumer spending, which is again due to recession and rampant job losses.

Another planning issue delay added to the woes of Las Vegas Sands Casino. It was planned that expansion of Convention Center and Sands Expo will be done. But indefinite delay in its expansion has back fired which got added to their impairment cost.

According to Chairman and CEO of Las Vegas Sands Casino, the company is going great guns as they are sticking to their business plan and meeting the deadlines. Their planning includes selling of assets and at the same time developing projects in Asia. This will help them to payoff some of their outstanding debt of the amount USD 10.8 billion.

Las Vegas Sands Casino Future Prospects

Everyone is talking about the future prospects of Las Vegas Sands Casino. What next? Is it going to revive again? Or the story is finished?

Las Vegas Sands Casino is launching their IPO, whose last date of collection was 31^st July 2009. So, there is still fire in the stock. The end has not come yet. They are down but definitely not out.