Operator News

China – Sands revenue dips below $1bn as losses nearly double

By William - 22 August 2022

Sands has reported a $760m loss in the first half of 2022, nearly double the $381m figure recorded for the same period last year.

Adjusted property EBITDA loss for the Group was $120m, compared to adjusted property EBITDA of $234m in the first half of 2021. Total net revenues were $915m, a decrease of 43.5 per cent on $1.62bn in the first half of 2021.

The Group says it has ‘sufficient liquidity in place’ of $766m in cash and cash equivalent balance, as well as access to $1.04bn of available borrowing capacity from its parent company.

Sands’ gaming operations remained open during the six months, but guest visitation to the Group’s properties was adversely affected due to various Covid-19 outbreaks that occurred in Shanghai, Hong Kong, Guangdong and Macao, which resulted in tighter travel restrictions.

Following an outbreak of COVID-19 in Macau in mid-June 2022, the Macau government announced a series of preventative measures. These included closure of a range of government, public and social facilities and restrictions on dining-in at restaurants.

The timing and manner in which Sands’ casinos, restaurants and shopping malls will resume operating at full capacity is currently unknown as ferry operations between Macau and Hong Kong remain suspended.

As such, the Macau government announced total visitation from mainland China to Macao decreased approximately 12.2 per cent and 78.1 per cent compared to the same half-year periods in 2021 and 2019.

Total gross gaming revenues in Macau through to the end of June were approximately $3.25bn, a 46.4 per cent decrease on 2021.