Gaming and hospitality giant Las Vegas Sands has reported financial results for the first quarter of the year. Pandemic-related restrictions and reduced visitation continued to impact the business during the period ended March 31, resulting in a widened net loss of $478 million, compared to $280 million in Q1 last year.
Additionally, the business delivered net revenue of $943 million, down from $1.2 billion in the prior-year quarter; and an operating loss of $302 million, widened from $96 million in 2021. Consolidated adjusted property EBITDA was $110 million versus $244 million last year.
“While pandemic-related restrictions continued to impact our financial results this quarter, we were able to generate positive EBITDA at Marina Bay Sands in Singapore, and for the company as a whole,” said Robert G. Goldstein, chairman and chief executive officer.
Sands Reports First Quarter 2022 Results: https://t.co/QdUNlA4Fvw pic.twitter.com/ym99gK2H1m
— Sands (@LasVegasSands) April 27, 2022
The executive further said the company remains “enthusiastic” about the opportunity to welcome more guests back to its properties once greater volumes of visitors are eventually able to travel to Macau and Singapore.
While demand for the company’s offerings from customers who have been able to visit these locations remains “robust,” Sands credits pandemic-related travel restrictions still in place in both Macau and Singapore as continuing to hinder current financial performance.
“Our industry-leading investments in our team members, our communities, and our Integrated Resort property portfolio position us exceedingly well to deliver future growth as these travel restrictions subside and the recovery comes to fruition,” commented Goldstein.
Marina Bay Sands in Singapore
Sands closed the sale of its Las Vegas real property and operations during the quarter, exiting the market on February 23 to focus on its Asia and digital operations. The business received approximately $5.05 billion in cash proceeds before working capital adjustments, transaction costs and income taxes.
The sale of The Venetian Resort assets (The Venetian, Palazzo and Venetian Expo) to affiliates of Apollo Global Management and VICI Properties marked a new chapter for the company. In addition, the business provided $1.20 billion in seller financing in the form of a six-year secured term loan.
However, pandemic-related restrictions are taking a toll on Sands China Ltd.’s operations, one of the key parts of Sands’ new strategy. For the period, total net revenues for SCL decreased to $547 million, compared to $771 million in the first quarter of 2021, while net loss widened to $336 million.
Breaking down companywide revenue for the period by vertical shows casino revenue represented $627 million of the total, while rooms delivered $95 million in revenue. Food and beverage revenue amounted to $53 million, mall posted $149 million, and convention, retail and other represented $19 million.
The Venetian Macau
Macau operations represented $551 million of total revenue. The company’s presence in the market was led by The Venetian Macau, which delivered $227 million in revenue, followed by The Londoner Macao ($121 million), The Plaza Macau and Four Season Macau ($102 million), and The Parisian Macao ($74 million). Meanwhile, Singapore’s Marina Bay Sands posted revenue of $399 million.
Las Vegas Sands stock fell following the financial report and the continuing headwinds affecting Macau operations, with investors also fearing uncertainty arising from planned regulatory changes in the Asian gambling mecca.
However, experts see an opportunity for investors once Macau and China re-open, and as the company explores a potential expansion into “a major country” in Asia. These plans were unveiled in an interview with Las Vegas Review-Journal last month.
“I don’t want to say where, but we’ve had some rather interesting conversations with a major country there that has reached out to us,” Goldstein said at the time. “We’re looking to build something of scale much like Marina Bay Sands. A lot of countries in Asia have reached out to us over the years, but nothing’s happened. This one feels like it might be a major prospect. A major country, a top-tier country.”
Original article: https://www.yogonet.com/international/news/2022/04/28/62409-sands-posts-widened-net-loss–revenue-down-in-q1-hit-by-macau-and-singapore-pandemic-restrictions
