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Sands China cites monthly expenses of US$200 million as monthly revenue drops to just US$9 million

Sands China Ltd has revealed an estimated monthly expenses run-rate of around US$200 million from its Macau operations during the current COVID-19 pandemic, with the company slipping to a net loss of US$180 million in April due to ongoing border restrictions that have decimated visitation.

In a business update filed with the Hong Kong Stock Exchange overnight, Sands China outlined monthly operating costs of US$110 million, another US$65 million in development and maintenance capital expenditures and US$25 million in interest costs.

At the same time, net revenues fell to just US$9 million in April 2020, down from US$700 million a year earlier, with a net loss of US$180 million compared with net income of US$148 million in April 2019. Adjusted property EBITDA loss was US$105 million, or US$3.5 million per day, with May’s results “not materially different” based on preliminary information available. The company said it borrowed US$404 million from its revolving credit facility during April and May to cover those costs.

The decline in revenue for Sands China – which operates The Venetian Macao, The Parisian Macao, Sands Macao and The Plaza Macao, and is currently transforming Sands Cotai Central into The Londoner Macao – reflects a 96.8% fall in Macau-wide gross gaming revenue and 99.6% decline in visitation to Macau in April. May’s GGR figure, released Monday, was also down 93.2% year-on-year to MOP$1.76 billion.

Nevertheless, Sands China said it has “a strong balance sheet and sufficient liquidity in place to fund its operations for 12 months in the current operating environment.

“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.”

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