Sands China revenue rises 71.4% in 2021, but well below 2019 levels

This is a year-on-year increase of 71.4% from $1.69bn recorded in Covid-19-hit 2020, but was less than a third of 2019’s total.

Much of the total consisted of casino revenue, which came to $1.98bn. This was a yearly increase of 69.3%. Mall revenue was $473m, up 75.8% year-on-year. Rooms revenue rose 91.7% to $276m, while food and beverage revenue made up $93m of the overall amount- up 57.6%. Other revenues, including convention, ferry and retail, fell by 2.2% to $45m.

For expenses, gaming tax was $1.10bn – $392m more than in 2020. Employee benefit expenses decreased by just $1m to $1.04bn. This left the earnings before interest, tax, depreciation and amortisation at $808m, a rise of $796m year-on-year.

Depreciation and amortisation came to $733m, up 7.1%. Other expenses, along with gains and losses, came to $578m. Consumed inventories were $34m

This left the overall operating loss at $537m, a $702m difference from a loss of $1.23bn in 2020.

Income from interest came to $2m. Finance costs came to $373m, while loss on early debt retirement came to $137m – leaving the loss before income tax at $1.04bn. This was a year-on-year rise at $462m.

Income tax expense was recorded at $3m, bringing the total net loss for 2021 to a $1.04bn, a difference of $475m.

Gambling-related visits to Macau came to an estimated 8 million in 2021, up approximately 31% from 2020 but down 80% from pre-pandemic levels in 2019.

“We are confident that both the company and Macao will emerge from this pandemic with unwavering optimism for the future,” said Robert Glen Goldstein, CEO and board chairman of Sands China.

“We have a strong organic growth outlook that will benefit from our industry-leading investments and unmatched scale as economic growth, wealth creation and increased demand for travel and entertainment will continue in Asia as the impact from the pandemic recedes.”

Sands China parent company Las Vegas Sands also saw revenue increase in 2021, rising by 43.9% to $4.23bn.

Last month legislators in Macau voted in support of an amendment which would overhaul gaming in the region. If passed into law the bill would see six concessions to operate casinos, rather than the previously permitted three.

Macau’s gaming revenue for January fell 21% year-on-year and 20.3% from December 2021.