Gaming operator Sands China has reported US$9 million (MOP71.8 million) in net revenues for April, a 98.7 per cent year-on-year decrease from the US$700 million reported in the same month of last year, the group indicated in a business update filing with the Hong Kong Stock Exchange.
The company also recorded an operating loss of US$164 million and a net loss of US$180 million in April 2020 due to the continuing impact of the Covid-19 Pandemic, plus a daily adjusted property EBITDA loss of approximately US$3.5 million and an aggregate adjusted property EBITDA loss of approximately US$105 million.
Sands China also estimated that due to the pandemic the monthly run-rate of operating costs reached about US$110 million, with development and maintenance capital expenditures of approximately US$65 million and US$25 million in interest expenses.
Macau reported the largest fall in gross gaming revenues on record in April, a 96.8 year-on-year drop to only MOP754 million, as gaming revenues went down by 73.7 per cent between January and May to some MOP33 billion.
The number of visitors also went down by 76.6 per cent year-on-year between January and April to about 3.2 million, with Mainland China visitor numbers freefalling by 76.7 per cent to about 3 million.
As with other gaming concessionaires, Sands saw its revenues plunge in the first quarter of this year due to the pandemic, dropping 65.1 per cent year-on-year to some US$814 million, with the downfall continuing in April and expected to progress in May.
‘Based on the preliminary information available, net revenues, operating loss, net loss and adjusted property EBITDA loss in May 2020 were not materially different relative to […] April 2020,’ the group noted.
Sands China stated it has taken various mitigating measures to manage through the current environment, including a cost reduction program to minimize cash outflow of non-essential items.
The group borrowed an aggregate amount of US$404 million during April and May 2020 under a 2018 Revolving Facility, and its Board of Directors resolved not to recommend the payment of a final dividend in respect of the year ended December 31, 2019.
Sands China underlined that it has a strong balance sheet and sufficient liquidity in place to fund its operations for 12 months in the current operating environment.
‘As of May 29, 2020, SCL had total liquidity of US$2.41 billion, consisting of US$801 million of total cash and cash equivalents and US$1.61 billion of available borrowing capacity under the 2018 SCL Revolving Facility. SCL believes it will be able to support its continuing operations, complete the major construction projects that are underway, and respond to the current COVID-19 Pandemic challenges,’ the group noted.