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Las Vegas Sands loses $1bn in H1 amid Covid-19


Land-based gaming giant Las Vegas Sands saw revenue fall 73.1% year-on-year for the six months ended 30 June, 2020 after Q2 revenue collapsed to almost zero due to the novel coronavirus (Covid-19) pandemic.

The business made $1.88bn in revenue for the half-year,down 73.1% year-on-year. Most of this revenue came from casino, at $1.19bn. However, this figure was down 76.4% year-on-year.

Revenue from rooms fell 67.9% to $282m while food and beverage revenue fell 66.9% to $151m and mall revenue declined 55.5% to $145m. Convention, retail and other revenue fell 61.3% to $115m.

As the novel coronavirus (Covid-19) pandemic affected China before the US, Las Vegas Sands’ Macau revenue fell most drastically, by 80.7% to $861m. Revenue for all operators on the island fell 77.4% for the first half of the year.

The Venetian Macau was the operator’s most successful property in the territory, but revenue fell 80.4% to $343m. Revenue from the Sands Cotai Central, meanwhile, fell 83.0% to $180m. 

Revenue from The Plaza Macau and Four Seasons Hotel Macau was the most stable, but still fell 71.0% to $126m while the Parisian Macau was most affected by the virus, with revenue falling 86.4% to $118m. Sands Macau revenue fell 75.2% to $76m while ferry operations revenue declined by 70.0% to $18m.

Elsewhere, the Marina Bay Sands resort in Singapore saw revenue decline 56.4% to $635m while revenue from the operator’s Las Vegas operating properties in the US fell 53.4% to $436m. In 2019, the business had also made $227m through the former Sands Bethlehem venue in Pennsylvania, which is now owned and operated by Wind Creek Hospitality. Overall revenue outside of Macau came to $1.02bn.

While operating expenses also fell drastically, by 46.3% to $2.75bn, they comfortably exceeded revenue.

The majority of this cost was from resort operations, which fell 53.2% but still exceeded revenue at $2.00bn.

This meant Las Vegas Sands’ resorts made a combined earnings before tax, interest, depreciation and amoritsation (EBITDA) loss of $110m, after a $2.72bn profit in 2019. Marina Bay Sands was the only venue with a positive EBITDA.

The business paid an additional $112m in corporate costs, down 44.6%, $9m in pre-opening expenses, down 35.7% and $15m in development costs, up 66.7%. After depreciation and amortisation costs of $575m, down 2.5%, and an additional $27m in amortisation of leaseholdings, up 17.4%.

This resulted in an operating loss for the half-year of $867m, compared to a $1.87bn profit in 2019.

After interest income of $17m, down 54.3%, interest expenses of $249m, down 13.3%, and other income of $34m, Las Vegas Sands’ pre-tax loss came to $1.07bn, compared to a $2.17bn profit in 2019.

The operator received a $29m tax benefit for net income of $1.04bn, compared to a $1.85bn profit the prior year. After accounting for income attributable to noncontrolling interests, Las Vegas Sands made a loss of $821m, after having made a profit of $1.54bn in 2019.

Due to closures in both the US and Macau, as well as drastically reduced visitor numbers after reopening, Las Vegas Sands only made revenue of $98m in Q2, down 97.1% year-on-year. Of this total, $10m came from casinos, down 99.6%, while $14m came from rooms, $12m from food and beverages, $42m from mall income and $20m from convention, retail and other income.

The operator’s Las Vegas operating properties were the best performer, but brought in only $36m, down 92.2%. Marina Bay Sands revenue fell 96.6% to $28m and combined Macau revenue fell 97.8% to just $47m.

Costs, however, did not decline nearly as drastically. Resort operation costs fell 68.6% to $651m while overall operating expenses fell 58.2% to $1.02bn. This resulted in an operating loss for the quarter of $922m, after an $894m profit in 2019.

After financial costs and taxes, Las Vegas Sands made a loss of $985m for the quarter,compared to a $1.34bn profit a year prior. Of this loss, a loss of $820m was attributable to Las Vegas Sands Corp.

Sheldon Adelson, chairman and chief executive of Las Vegas Sands, said that while the business was severely affected by the pandemic, it is now in the process of recovering.

“I am pleased to say that the early stages of the recovery process from the Covid-19 pandemic in each of our markets is now underway,” Adelson sair. “Our greatest priority during this period of the recovery remains our deep commitment to supporting our team members and to helping those in need in each of our local communities of Macau, Singapore and Las Vegas. 

“We remain optimistic about an eventual recovery of travel and tourism spending across our markets, as well as our future growth prospects. We are fortunate that our financial strength will enable us to continue to execute our previously announced capital expenditure programs in both Macau and Singapore, while continuing to pursue growth opportunities in new markets.”