Macau, Cotai strip

Sands China incurred almost doubled its loss for 1H22 compared to last year’s loss, but remains financially strong and will continue to invest in the projects announced and are on verge of completion, the concessionaire said in the half-year interim report.

The company’s net loss widened at $760 million in the first half of 2022, as compared to $381 million loss reported during the first half of 2021.

“All of our operating segments and business categories for the six months ended June 30, 2022, remain impacted by the COVID-19 Pandemic,” the financial results summary section of the company’s interim report read.

Adjusted property EBITDA loss for the Group was US$120 million in the first half of 2022 down 49 percent, compared to adjusted property EBITDA of US$234 million in the first half of 2021.

Total net revenues for the Group were US$915 million in the first half of 2022, a decrease of 44 percent compared to US$1.62 billion in the first half of 2021.

Segments 

Of the total revenue of $915 million, the casino component contributed 62 percent of the revenue metrics pegged at $568 million down 52 percent on a YoY basis from $1.2 billion.

The second major contributor was the mall segment 21 percent, which was down 11 percent on a YoY basis at $193 million from $218 million, whereas Rooms segment which contributed 11 percent to the revenue pie, dipped 33 percent on YoY basis at $98 million from $147 million.

Foods and Beverages segment constituted 4 percent, which slipped 24 percent on a YoY basis at $37 million from $49 million.

Whereas Convention, Ferry, Retail and Other segments which constituted 2 percent of the revenue pie dropped 21 percent on a YoY basis at $19 million from $24 million.

COVID-19

The company’s gaming operations remained open during the six months ended June 30, 2022. 

Guest visitation to our properties, however, was adversely affected during the six months ended June 30, 2022 due to the various outbreaks that occurred in Shanghai, Hong Kong, Guangdong and Macao, which resulted in tighter travel restrictions, the interim report read.

The timing and manner in which the casinos, restaurants and shopping malls will resume operating at full capacity is currently unknown, the report read.

The company’s ferry operations between Macao and Hong Kong remain suspended; the timing and manner in which our ferry operations will be able to resume are currently unknown, the report claimed.

“The company’s operations have been significantly impacted by the reduced visitation to Macao,” the report claimed.

Funds 

Sands China has sufficient liquidity in place, including total cash and cash equivalents balance, excluding restricted cash and cash equivalents, of US$766 million and access to US$1.04 billion of available borrowing capacity from the company’s 2018 SCL Revolving Facility as of June 30, 2022, the report read.

In addition, US$1.0 billion was advanced from Las Vegas Sands (LVS), the Company’s Controlling Shareholder, to the Company through a term loan on July 11, 2022, which enables and allows the company management to believe that the company is able to support continuing operations, complete the major construction projects that are underway, proceed with the Macao concession renewal process and respond to the current COVID-19 Pandemic challenges for at least twelve months from the end of the reporting period, the report read.

The company has equally taken various mitigating measures to manage the current environment, including a cost and capital expenditure reduction program to minimize cash outflow for non-essential items, the report read.

During the first half of 2022, the Londoner Arena and the expansion of Shoppes at Londoner were completed, which marks the completion of all key milestones of The Londoner Macao project, plus Work has commenced on two new hot pot restaurants which will be next to the Londoner casino and North Palace, and which is due for completion in early 2023, the report read.