Sands China Limited, one of the largest casino operators in Chinese gambling hub of Macau, suffered a net loss of $423 million in the three months to the end of September (Q3) as business conditioned remained harsh due to turmoil caused by recurrence of Covid-19 health crisis.
The aforementioned quarterly loss seems to be hefty but it represents an improvement of nearly 25 per cent for the the Las Vegas Sands Corp.’s subsidiary as it had suffered even bigger loss of $562 million in the same three-month period of 2020. More precisely, the casino operator was in the red in the third quarter but the loss was 24.7 per cent down year-over-year.
Sands China Ltd. is one of the biggest integrated resort developer and operator in the Chinese SAR of Macau. Its parent firm, Las Vegas Sands Corp., is the owner of a number of world-renowned gambling and entertainment properties, including the Venetian Las Vegas and The Palazzo. Sands China Ltd. operates properties like the Venetian Macao, Sands Macao, the Plaza Macao and the Parisian Macao. It is also bringing a new property called the Londoner Macao, which claims to have the ability to provide a unique experience to gambling and hospitality enthusiasts.
The Hong Kong-listed casino operator saw its associated Q3 net revenues tumbling down by more than 28 per cent quarter-on-quarter to $611 million. However, even this unsatisfactory figure is well above the revenue of $167 million that it generated during the corresponding quarter of 2020.
Robert Goldstein, the Chairman and Chief Executive Officer (CEO) for Sands China Ltd., claimed that the operator still managed to generate positive adjusted earnings before interest, tax, depreciation & amortization of $32 million in the quarter under review.
Speaking on the topic, Goldstein added, “While heightened pandemic-related restrictions impacted our financial results this quarter, we were able to generate positive earnings before interest, tax, depreciation and amortization in each of our markets. We remain confident in the eventual recovery in travel and tourism spending across our markets.”
The latest quarterly loss was mainly due to the recent re-introduction of various travel restrictions prompted by a small outbreak of Covid-19 in Macau—a special administrative region (SAR) of China. It is interesting to note here that casino gambling is illegal across China, except Macau, which boasts to be the world’s biggest gambling hub.