Sands China reports US$562m net losses for Q3

Sands China has reported losses for the third quarter.
Sands China has reported losses for the third quarter.

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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