Sands China reports US$562m net losses for Q3

Sands China reports US$562m net losses for Q3

The casino operator says it remains optimistic despite losses.

Macau.- Casino operator Sands China has reported figures for the third quarter showing MOP4.4bn (US$562m) in net losses and a 92.1 per cent decrease in total net revenues compared to the same period last year.

Adjusted EBITDA losses reached US$233m.

According to the figures, Sands China reported US$279 million in construction, development and maintenance expenses in Macau.

However, the company remains optimistic and forecasts a near recovery. Bernstein analysts consider that Sands is actually currently trending EBITDA-positive during October. The brokerage said the confidence of the company comes from big expectations for the resumption of visas for visitors from mainland China.

Bernstein analysts said in a note: “In Macau, the company is seeing strong performance across premium mass and retail in recent weeks. Premium mass is by far the best-performing segment, followed by base mass and then VIP.

“Most overnight visitors in October are coming from non-Guangdong province. Junket VIP has been slow to recover, but only represents ~4 per cent of Sands’ EBITDA last year according to management.”

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