Las Vegas Sands Plunging Amid Reports of Macau Layoffs

Las Vegas Sands Corp. LVS Chairman Sheldon Adelson has reportedly threatened Macau government officials with layoffs in response to slowing gaming revenues, according to a report in Business Daily. The company recently reported first-quarter earnings that slid 34 percent, largely a result of Macau's slowdown. Net revenues for Sands China fell 35 percent, while net income dropped by 54.2 percent.

According to the report, Adelson was "very direct and not elegant" in talking with Macau officials. The sources quoted in the report also "insinuated that the government was to blame for the slump in gaming."

Following the prior earnings report, Adelson downplayed Macau challenges, stating, "While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to deliver in excess of one billion U.S. dollars of Adjusted Property EBITDA during the quarter."

Year-to-date, Las Vegas Sands stock has declined 4.8 percent to $55.39. Over the past year, the stock is down 28 percent after hitting a high of $81.25. The stock is indicated nearly 3 percent lower in premarket trading, with prices trading at $53.79 last.