Sands China has reported a downturn in revenue, with a USD336 million net loss recorded in the first quarter for this year, a greater fall than the USD213 million loss recorded in Q1 last year.
The net loss figure recorded for the first three months of this year is also greater than last quarter’s USD245 million loss.
Commenting on the financial report, Las Vegas Sands chairman and CEO Rob Goldstein said that the gaming operator remains confident in the recovery of travel and tourism spending across the company’s markets.
“Demand for our offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions in both Macau and Singapore continue to limit visitation and hinder our current financial performance,” he said.
The downturn comes as new Covid-19 cases have emerged in neighboring regions, resulting in tightened border restrictions.
Sands China’s revenue for the first quarter stood at just USD547 million, a steep fall from the USD771 million figure for the same period last year, and less than the USD643 million revenue posted in the fourth quarter of last year.
“Our results continue to reflect the pandemic’s impact: the travel restrictions, suppressed visitation [have affected] our financial results in both Macau and Singapore this quarter,” said Goldstein.
Las Vegas Sands generated a positive EBITDA figure for the quarter in Singapore and for the company as a whole, with Singapore opening its borders to vaccinated travelers.
In Macau, current quarter results were severely affected by the tightened travel restrictions in China, but “customer demand and spend in Macau have proven resilient at the premium mass level from both a gaming and retail perspective in periods when the restrictions have been relaxed,” said the gaming chief.
In an earnings call with analysts, Goldstein expressed the group’s confidence that it will return to positive cash flow in both Macau and Singapore in the future as restrictions ease and travel and tourism recover.
Macau’s borders have been closed to foreign arrivals since March 2020, with only travelers from mainland China, Taiwan and Hong Kong allowed – part of Macau’s adoption of the zero-Covid strategy imposed in Beijing.
For now, Las Vegas Sands considers Singapore to be the “best product that we have in the market today.”
“Macau essentially is not available. I think we compete very well anyway in Singapore, but it’s unique now,” said Goldstein.
