Macau concessionaire Sands China reported a group-wide loss of HK$12.3 billion (US$1.58 billion) for the 12 months ended 31 December 2022, impacted by significantly lower revenues across key business segments as a result of COVID-19 control measures.
Releasing its FY22 financial results on Friday, some two weeks after parent company Las Vegas Sands released its own financials, Sands China said net revenues fell 44.2% year-on-year to HK$12.5 billion (US$1.61 billion) including a 52.3% decline in casino revenues to US$947 million.
Mall revenue also fell by 25.2% to US$354 million and rooms revenue by 33.3% to US$184 million.
Adjusted property EBITDA was a loss of HK$2.52 billion (US$323 million), slightly narrowed from an EBITDA loss of HK$2.66 billion (US$341 million) in 2021.
Sands China Chairman and CEO Rob Goldstein said the company had implemented a variety of cost control measures throughout 2022 which had limited losses but added the company had maintained its commitment to employees throughout and “avoided mass workforce reductions”.
“Our scale and financial strength allowed us to continue to provide support to our team members and the local community in Macau and to accelerate our capital investment programs in support of Macau’s diversification and long-term development objectives as the leading leisure and business tourism destination in Asia,” he said.
Since the start of the COVID-19 pandemic, Goldstein added, Sands China has invested in approximately 1,250 new luxury suites featuring approximately 2.7 million square feet (approximately 251,000 square meters) of new accommodation offerings at The Londoner Macao Hotel and Londoner Court at The Londoner Macao, and The Grand Suites at Four Seasons.
“Our Sands China business strategy remains straightforward: continue the execution of our Cotai Strip development initiatives by leveraging our convention-based integrated resort business model and world-class amenities to contribute to Macau’s diversification,” he said, pointing to the recent award of a new 10-year gaming license by the Macao SAR Government.
“These efforts will drive Sands China’s market-leading revenue and cash flow generation as the recovery in travel and tourism to Macau comes to fruition. We are confident that the company and Macau will emerge from this challenging period with unwavering optimism for the future.”
Sands China said in its FY22 results release that it maintains US$790 million in cash and cash equivalents with further borrowing capacity of US$541 million.
However, parent LVS recently said its Macau operations were profitable again following the easing of almost all remaining border restrictions on 8 January 2023.
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