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The group’s financial performance continues to be hampered, according to Sands China, by the unpredictability of stricter border restrictions in Macau and the resulting decline in visitor numbers.
Despite claiming that the casino operator’s “offerings from customers who have been able to visit remain robust,” the casino operator claims that the negative impact will last “until the COVID-19 pandemic is contained.”
The remarks come as the organisation released a report on the pandemic’s ongoing impact on its operations, citing performance in July and August as an example, where “tighter border restrictions were implemented in Macao, affecting visitation to our properties.”
Net revenue for the group in July and August was US$265 million and US$148 million, respectively, compared to US$43 million and US$53 million a year ago, with an operating loss of US$25 million and US$83 million, respectively, compared to US$141 million and US$148 million, and a net loss of US$63 million and US$125 million, respectively, compared to US$165 million and US$175 million.
In addition, through July and August 2021, adjusted property EBITDA of US$44 million and a loss of US$14 million were recorded, compared to losses of US$79 million and US$83 million during the same time the previous year.
Cost and capital expenditure reduction programme
In order to ensure a seamless transition through the current environment, the company has implemented a cost and capital expenditure reduction programme to reduce cash outflow for non-essential things.
Sands China further states that it is confident in its ability to sustain ongoing operations, finish key construction projects, and respond to COVID-19 difficulties.
The Sands China update reads: “The company continues to look forward to the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao.
“Demand for the group’s offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions and the evolving COVID-19 situation in Macao and mainland China continue to limit visitation and hinder the company’s current financial performance.”
Macau official numbers
Sands China also uses Macau official numbers to support its visitation concerns, claiming that monthly gross gaming revenue and overall visitation from mainland China fell by 65.5 percent and 71.8 percent, respectively, in July 2021, compared to pre-pandemic levels in the same period in 2019.
On a year-over-year basis, however, GGR and total visits both increased by 528.1 percent and 989.4 percent, respectively.
Monthly GGR climbed by 234 percent from the same period in 2020 to August 2021, but fell by 81.7 percent from pre-pandemic levels.