In Macau and the local Sands China Limited subsidiary of American casino operator Las Vegas Sands Corporation has released its unaudited financial results for the first six months of the year showing a net loss of just beyond $760.4 million.
The Hong Kong-listed firm used an official Friday filing (pdf) to detail that the disappointing six-month figure is over double the $377.6 million deficit it chalked up for the same period in 2021 and arose as associated aggregated net revenues declined by 43.5% year-on-year to stand at just over $916.1 million. The operator behind the 3,000-room The Venetian Macao property went on to declare that this decrease came as a result of ‘tighter travel restrictions’ brought in following ‘various outbreaks’ of the coronavirus ailment in Macau, Shanghai, Hong Kong and mainland China.
Plummeting proceeds:
Sands China Limited is also responsible for the impressive The Plaza Macao, The Parisian Macao, The Londoner Macao and Sands Macao properties and revealed that its aggregated first-half net gaming revenues fell by 51.9% year-on-year to stand at about $568 million. The company additionally noted that this was joined by a 33.3% reduction in room receipts, a 24.5% wane in food and beverage takings and a drop of 20.8% in income from convention, ferry and retail activities.
Read the filing from Sands China Limited…
“Net revenues decreased across all business categories, mainly driven by a decrease in visitation due to tighter travel restrictions as a result of increased positive coronavirus cases in the nearby region and Macau during the six months ended June 30, 2022.”
Potential positive:
However, Sands China Limited furthermore noted that its adjusted first-half earnings before interest, tax, depreciation and amortization deficit of around $120.1 million equated to an improvement of some 48.2% when compared to the roughly $232.2 million shortfall it racked up for the same six-month period in 2021. The operator pronounced that this progress came as a result of lowered visitation in the face of tightening coronavirus-related restrictions while it is now continuing ‘to focus on operational efficiencies and cost control measures on the gaming and non-gaming businesses’.
The filing from Sands China Limited read…
“The timing and manner in which our casinos, restaurants and shopping malls will resume operating at full capacity is currently unknown. We cannot predict the manner in which governments will react as the global and regional impacts of the coronavirus pandemic changes over time, which could significantly alter our current operations.”
Situational satisfaction:
Nevertheless, Sands China Limited finished by proclaiming that its decision to make ‘industry-leading investments in our team members, our communities and our integrated resort property portfolio position’ has placed its business in a strong position ‘to deliver future growth as these travel restrictions subside and the recovery comes to fruition.’
