Operator News
China – Sands China reports a loss of US$125m in August but revenues up 179.2 per cent
By Phil - 9 September 2021
Sands China generated net revenues of US$265m and US$148m in July and August 2021 compared to US$43m and US$53m in July and August, 2020, respectively, representing an increase of 516.3 per cent and 179.2 per cent, respectively.
A company spokesperson said: “We had an operating loss of US$25m and US$83m and a net loss of US$63m and US$125m in July and August 2021, respectively, as compared to operating loss of US$141m and US$148m and net loss of US$165m and US$175m, respectively, in the same periods in the prior year. Additionally, our financial performance reflects adjusted property EBITDA of US$44m and adjusted property EBITDA loss of US$14m in July and August 2021, respectively, as compared to adjusted property EBITDA loss of US$79m and US$83m, respectively, in the same periods in the prior year.”
The Group believes it is able to support continuing operations, complete the major construction projects that are underway and respond to the current COVID-19 Pandemic challenges. The Group has taken various mitigating measures to manage through the current environment, including a cost and capital expenditure reduction program to minimize cash outflow for non-essential items.
From the end of July 2021 and for most of August 2021, tighter border restrictions were implemented in Macao affecting visitation to our properties. These restrictions included travelers from Guangdong being required to submit a negative nucleic acid test certification issued within 48 hours, which tightened to 12 hours for a period, and then eased to the more relaxed 7 day requirement near the end of August 2021.
The company said: “The tightening of the border restrictions in Macao is unpredictable as it is dependent on the number of new COVID-19 cases in Macao as well as mainland China and the Macao government’s response to such information. The Company continues to look forward to the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao. Demand for the Group’s offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions and the evolving COVID-19 situation in Macao and mainland China continue to limit visitation and hinder the Company’s current financial performance. The COVID-19 Pandemic has materially adversely affected the number of visitors to our facilities and disrupted our operations, and we expect this adverse impact to continue until the COVID-19 Pandemic is contained.”
