The $11.2-million first quarter loss, well below analysts' consensus estimate, is being attributed to new competition abroad and declining tourism at home. In the same period last year, the company posted a profit of $90.9 million. Excluding items such as losses on sold assets and casino opening expenses, adjusted earnings totaled $23.6 million. The comparable result for the first quarter of 2007 was $114 million.

"Our first-quarter operating results reflect both an intensely competitive operating environment in Macau as well as a weaker economic environment here in the United States," says William Weidner, Sands president and chief operating officer.

Due to the new Palazzo, the company saw revenue jump 72% to $1.08 billion from $628.2 million in the first quarter of 2007. Analysts expected revenue of $1.24 billion. Due in large part to the Palazzo, net revenue at the company's Las Vegas properties rose 21% over the previous year to $351.6 million. Net revenue at the Venetian Macao, which opened in August, was $455.7 million. While net revenue at Sands Macao fell 23% to $268.3 million.