Sands China records more losses in April than in Q1

Sands China Ltd.’s net loss in April was $180 million, compared to the $166 million net loss from January to March amid the pandemic outbreak.
In April, the gaming operator recorded a 98.7% year-on-year drop in its revenue to $9 million. The group’s revenue in April 2019 stood at $700 million.
According to reports, the group is expecting May revenues to be similar to April, as “based on the preliminary information available, net revenues, operating loss, net loss and adjusted property EBITDA loss in May 2020 were not materially different.”
The gaming operator has reportedly borrowed $404 million from its revolving credit facility to cover the nearly $200 million a month it takes to keep the company’s Macau venues running.
The company reported $110 million in operating costs, $65 million in development and maintenance and $25 million in interest costs.
“Sands [China] had $2.41 billion of liquidity as of 29 May 2020 (including $1.6 billion available under revolver), down from $2.8 billion at end-March given monthly cash-burn of $195 million (including development capex),” according to JP Morgan analysts DS Kim, Derek Choi and Jeremy An, as cited in a note seen by GGRAsia.
The brokerage said that the report of the gaming operator did not come as a surprise.
However, the analysts said that “Sands China believes it has a strong balance sheet and sufficient liquidity in place to fund its operations for 12 months in the current operating environment.” LV

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