Las Vegas Sands suffers due to tax bill
The casino company saw a huge loss last quarter due to tax payments
2018 turned out not to be a great year for the Sheldon Adelson-run Las Vegas Sands Corporation. The casino operator reported a net loss of $40 million in the last quarter of 2018, which was the result of a huge income tax payment made by the company during the same quarter. That payment was for a whopping $727 million.
The tax payment came in relation to the Tax Cuts and Jobs Act, which was updated on January 1 of last year. The Act is published by the IRS and the section specifically dealing with international provisions is where Sands was caught. It stated that, if it had not been for the Act, its effective tax rates for the fourth quarter of 2018 would have been 7.4%.
Due to the IRS stepping up enforcement of the Act, Sands saw its year-over-year net profit slide. In 2017, it took in $3.26 billion, but “only” saw a return of $2.95 billion last year, a drop of 9.6%.
Adelson stated of last year’s performance, “We are pleased to have delivered strong financial results in the quarter, led by record mass revenues and continued growth in every market segment in Macao. Our Integrated Resort property portfolio in Macao delivered adjusted property EBITDA of $786 million, an increase of 7.7% compared to the fourth quarter of 2017. At Marina Bay Sands in Singapore, our hotel, retail, convention and mass gaming segments all exhibited growth, contributing to $362 million of adjusted property EBITDA [earnings before interest, taxes, depreciation and amortization] for the quarter.”