Sands China reports US$716m loss for H1

Sands China reports US$716m loss for H1

Profit for the first half fell 167% due to the pandemic.

Macau.- Casino operator Sands China has reported a 167.1 per cent loss for the first half of 2020 compared to the same period in 2019.

Posting unaudited consolidated results, the group reported losses of HK$5.55 billion (US$716 million) compared to a profit of HK$8.34 billion (US$1.07 billion) in thefirst half of 2019.

The company said: “All of our operating segments and business categories were significantly impacted by the Covid-19 pandemic resulting in materially lower operating results and cash flows from operations.”

Due to the sanitary emergency, the Macau government shut gaming operations for 15 days on February 5. Sands China casinos reopened on February 20 except for its Cotai resort which started a week later.

Adjusted property EBITDA loss for the group during the period was -HK$1.90 billion (US$243 million), a fall of 115 per cent year-on-year.

Net revenues totalled HK$6.57 billion (US$848 million) in the first six months of the year, 81 per cent less than in the first half of 2019.

The company said gaming operations currently continue under established health safeguards, limiting the number of seats per table game, slot machine spacing, temperature checks, with no site of when restrictions could be lifted.

Although the group mentioned the outlook for the future is improving due to the resumption of Chinese tourism visas, the forecast remains uncertain.

It said: “If the group’s integrated resorts are not permitted to resume normal operations, travel restrictions such as those related to the China IVS and other global restrictions on inbound travel from other countries are not modified or eliminated or the global response to contain the Covid-19 pandemic escalates or is unsuccessful, the group’s operations, cash flows and financial condition will be further materially impacted.”

The group has made progress in the execution of the US$2.2 billion capital investment program for The Londoner Macao and The Grand Suites at Four Seasons.

Confident in the eventual recovery of tourism in Macau, the company said it believe capital investment programs will strengthen its leadership position in the market and provide a larger platform for future growth as travel and tourism spending return.

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