August results for Sands China Limited hurt by coronavirus-related travel restrictions
In Macau and local casino operator Sands China Limited has reportedly announced that its net loss for August almost doubled month-on-month to hit $125 million as a direct result of the implementation of new coronavirus-related border restrictions.
According to a report from Inside Asian Gaming, the firm behind the 289-room Sands Macao venue moreover detailed that its net August revenues fell by just over 44% month-on-month to about $148 million while its associated adjusted earnings before interest, tax, depreciation and amortization dropped from a profit of some $44 million in July to a deficit of approximately $14 million.
A subordinate of American casino behemoth Las Vegas Sands Corporation, Sands China Limited is also responsible for the impressive The Venetian Macao, The Plaza Macao and The Parisian Macao properties as well as the new-look The Londoner Macao development. The source explained that the firm used an official investor disclosure (pdf) yesterday to blame its flagging fortunes on the July implementation of a scheme that obliged people travelling into Macau from Guangdong Province to submit a negative test for coronavirus issued within twelve hours of departure.
Hong Kong-listed Sands China Limited reportedly disclosed that this fresh barrier significantly reduced the prevalence of mainland Chinese tourists within its venues, which is a state of affairs that began to improve from late last month after the local government relaxed the validity period for such checks back to an earlier seven-day threshold. Nevertheless, the operator purportedly pronounced that it currently has in the region of $2.55 billion in liquidity, which encompasses roughly $556 million in cash, and believes that it remains ‘able to support continuing operations, complete the major construction projects that are underway and respond to the current coronavirus pandemic challenges.’
Reportedly read the disclosure from Sands China Limited…
“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. The board did not recommend the payment of a final dividend in respect of the year that ended on December 31, 2020, or an interim dividend for the six months that ended on June 30, 2021.”
Looking further ahead and Sands China Limited reportedly proclaimed that it hopes to begin welcoming more gamblers to its five properties soon ‘as greater volumes of visitors are eventually able to travel to Macau.’ Nonetheless, it stated that demand for its offerings from those who have been able to travel into the former British enclave ‘remains robust’ despite hinderances brought about by ‘pandemic-related travel restrictions and the evolving coronavirus situation in Macau and mainland China’.
The disclosure from Sands China Limited reportedly read…
“The coronavirus 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 coronavirus pandemic is contained.”