Sands China Ltd. raked in aggregate net revenue of HKD12.58 billion in the first half (H1) of 2021, representing a remarkable 91% increase compared to HKD6.57 billion in the first half of 2020.
The group announced the encouraging six-month financial result in a statement last Friday August 13.
Sands China also registered a smaller loss in the first half of this year compared to the previous year, recording HKD2.96 billion in losses in the first six months, a noticeable improvement from losses of HKD5.55 billion in the same period last year.
Meanwhile, the adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) for the group were HKD1.82 billion in H1, a sharp turnaround from an adjusted property EBITDA loss of HKD1.90 billion in H1, 2020.
“All of our operating segments and business categories in the first half of 2021 saw a modest recovery from the impact of the Covid-19 pandemic due to relaxed travel restrictions during the period, resulting in increased visitation to our properties,” the statement said.
These relaxations include the lifting of the negative Covid-19 test proof requirement for entry to casinos on March 3 this year, and a return to full-swing gaming operations in the first half of this year.
The gaming sector of Sands China had been forced to suspend operations from February 5 to 19 last year in accordance with a mandate of partial lockdown implemented by the government at the time. In H1 this year, the group’s gaming operations remained open.
However, the group stated in the report that the economic and regulatory environments in the city and globally continue to evolve due to uncertainties around the pandemic, “which could significantly alter the group’s current operations.”
The gaming operator is affected not only by the pandemic, but also the uncertainty regarding the renewal proceedings for the city’s gaming licenses.
The city’s three gaming concessions and three sub-concessions expire on June 26, 2022. Venetian Macau Limited (VML), a subsidiary of Sands China Ltd, holds one of the sub-concessions.
If the group’s gaming license is not extended or renewed after the expiration date, VML will be barred from engaging in the gaming business, with its gaming-related equipment required to be transferred to the government without compensation.
“The company is actively monitoring the renewal process and continues to believe its sub-concession will be extended or renewed; however, it is possible the Macau government could change or interpret the associated gaming laws in a manner that could negatively impact the group,” the group stated.
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