Macau Drags Las Vegas Sands to Profit Miss

In its release, management said VIP volumes at the property "were down sequentially due to the increasingly competitive environment that has developed in this market over the last few months."

This was likely a subtle reference to competitor Melco PBL's(MPEL Quote) decision to raise junket commissions in December to bring guests to its Crown Macau property in an attempt to dominate the VIP gambling market.

In Las Vegas, results were mixed and slightly missed official analyst estimates. Overall property EBITDA increased 9.3% to $122.6 million, driven mostly by the opening of the company's second property, The Palazzo, at the end of 2007.

Analysts expected $130 million at the two properties, according to StreetAccount, but the whisper number was $120 million, the industry source says.

A key hotel operating metric, revenue per available room, fell 8.4% from a year earlier at The Venetian Resort Hotel Casino in Las Vegas.