Sands China Limited Experiences Third-Quarter Disappointment Due to Coronavirus
Sands China Limited, a Macau casino operator, is said to have lost $423 million in the three months ending in September as it continues to struggle with the effects of the current coronavirus outbreak. Like the many breathing industries out there such as the casino Singapore market, it’s a complete struggle to keep up.
Despite being 154 percent higher than the previous quarter’s shortfall of $166 million, the deficit for the Las Vegas Sands Corporation subordinate improved by 24.7 percent when compared to the $562 million loss it racked up for the same three-month period in 2020, according to a report from a popular online games article.
The company’s recent financial figures were considerably harmed, according to the source, by the recent restoration of a number of travel restrictions following a small coronavirus epidemic in Macau.
A 423 million US dollar loss
A net loss of US$423 million was reported for the casino operator, a very noticeable drop from the 562 million US dollars loss reported the previous year. But it has also been a considerable increase from the 166 million US dollars loss reported in the second quarter.
Small outbreaks of COVID-19 in Macau in early August and late September had a big impact on the results, and the territory’s borders with mainland China were closed. Some of these limitations were just relaxed this week, such as a necessary 14-day quarantine for all arrivals from Macau.
Sands China reported net revenues of US$611 million in the third quarter of 2021, up from US$167 million the year before but down from US$849 million in the second quarter of 2021. Even popular casino sites like Solarbet have also taken a hit all the year through.
The Parisian Macao lost US$5 million in Adjusted EBITDA, while the Londoner Macao lost US$33 million, and Sands Macao lost US$21 million. Meanwhile, The Venetian Macao’s Adjusted EBITDA of US$40 million, as well as The Plaza Macao and Four Seasons Macao’s Adjusted EBITDA of US$42 million, helped it to a positive Adjusted EBITDA of US$32 million.
The Venetian Macao, Sands Macao, The Plaza Macao, and The Parisian Macao, as well as the new-look The Londoner Macao development, are all owned by Sands China Limited.
The linked third-quarter net revenues of the Hong Kong-listed company fell by slightly more than 28 percent quarter on quarter to $611 million, despite the fact that this disappointing figure was still significantly higher than the meager $167 million earned in the same three-month period in 2020. That’s merely the amount of money that football organizers would die for.
Sands China Limited’s Chairman and Chief Executive Officer, Robert Goldstein, reportedly disclosed that the company still managed to post positive third-quarter adjusted earnings before interest, tax, depreciation, and amortization of $32 million.
He allegedly went on to explain that The Venetian Macao was responsible for a large portion of this success, with receipts for the three-month period totaling $40 million, with The Plaza Macao contributing an additional $42 million.
While increased pandemic-related restrictions impacted the company’s financial results this quarter, they were able to generate positive earnings before interest, tax, depreciation, and amortization in each of their markets, according to Goldstein. They are optimistic about the eventual recovery in travel and tourism spending across their various markets.
Sands China Limited is also in charge of the Marina Bay Sands complex in Singapore, which recorded an 11.3 percent reduction in third-quarter revenues to $249 million.
The Parisian Macao, on the other hand, is said to have made only $5 million in linked revenue, while The Londoner Macao and Sands Macao both lost $33 million and $21 million, respectively.
Competition is tight
Las Vegas Sands Corp. (LVS) is a publicly-traded company based in Las Vegas, Nevada. The S&P 500 Index SPX, -0.82 percent rose 0.09 percent to 4,701 on Monday, while the Dow Jones Industrial Average DJIA, -0.66 percent rose 0.29 percent to 36,432. Las Vegas Sands Corp. ended the day $25.20 short of its 52-week high, set on the 3rd of March.
The stock had a mixed performance on Monday when compared to some of its competitors, like Sands China Ltd. MGM Resorts International MGM, -2.68 percent, lost 3.63 percent to $48.54, while Wynn Macau Ltd., -1.68 percent, jumped 5.13 percent to $23.54. ADR SCHYY, -1.68 percent, rose 5.13 percent to $23.54. WYNMY, -1.12 percent, rose to $9.10, up 1.79 percent. The volume of trading was 1.8 million lower than the 50-day average volume of 10.0 million.