Sands China earned $9 million in April, an almost 99% drop from $700 million the previous year due to the fallout of the coronavirus pandemic. As a result, Sands reportedly borrowed $404 million from its revolving credit facility to cover the costs due to the nearly $200 million a month it takes to keep the company’s Macau venues running: $110 million in operating costs, $65 million in development and maintenance, and $25 million in interest costs.
The company expects May to be similar to April and stated that “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 company announced it has “a strong balance sheet and sufficient liquidity in place to fund its operations for 12 months in the current operating environment”.
The losses Sands face seem to reflect the overall market situation in Macau. GGR in Macau fell by nearly 97% in April, recording a 99% decline in visitation. May experienced a 93% drop in GGR to MOP$1.76 billion.