Operator News
China – Macau casinos costing Sands China US$200m a month to stay open
By Phil - 2 June 2020
Sands China’s Macau casinos, The Venetian Macao, The Parisian Macao, Sands Macao and The Plaza Macao, have been costing the company US$200m a month to stay open at a time when revenues are next to nothing due to the COVID-19 pandemic and related border restrictions.
Those costs are split into operating costs of US$110m, US$65m in development and maintenance capital expenditures and US$25m in interest costs. Sands reported a net loss of US$180m in April due to the restricted visitation, which has been 99.6 per cent down across Macau. Sands reported a 98.7 per cent year-on-year decrease from the US$700m reported in the same month of last year. Adjusted property EBITDA loss was US$105m, or US$3.5m per day. The company said May’s results wouldn’t be ‘materially different.’
Sands has taken US$404m from its revolving credit facility during April and May to cover those costs.
The operator said: “Based on the preliminary information available, net revenues, operating loss, net loss and adjusted property EBITDA loss in May 2020 were not materially different relative to April 2020. As of May 29, 2020, SCL had total liquidity of US$2.41 billion, consisting of US$801 million of total cash and cash equivalents and US$1.61 billion of available borrowing capacity under the 2018 SCL Revolving Facility. SCL believes it will be able to support its continuing operations, complete the major construction projects that are underway, and respond to the current COVID-19 Pandemic challenges.”
