Sands China's revenue down 98.7 percent in April amid COVID-19 pandemic

Sands China, a Las Vegas Sands Corp. subsidiary, announced its revenue "evaporated" almost entirely in April. The company reported revenue of $9 million that month, a 98.7% drop from the year-ago period, on a loss of $180 million.

The hit came as Macau's gross gaming revenue fell 96.8% and visits from mainland China plunged 99.6% in April, the Market Screener reports.

Sands China recorded net income of $148 million in the same month last year.

Daily adjusted loss of property earnings before interest, taxes, depreciation, and amortization was $3.5 million for the month, totaling $105 million, compared with an aggregate property Ebitda of $239 million in the prior year.

May results for revenue, operating loss, net loss, and adjusted property Ebitda weren't that different from those of April, Sands China said. The subsidiary borrowed $404 million in April and May from its revolving facility.

For the first three months of the year, Sands China posted revenue of $808 million on a loss of $166 million. It posted revenue of $2.33 billion on net income of $557 million in the year-ago period.

The first quarter, according to the Macanese government, reflected an 83.3% decrease in visits from mainland China into Macau for the first seven days of the Lunar New Year, a usually lucrative travel period that was disrupted during the early days of the outbreak. For the period, visits from mainland China fell 14.9% in January, 97.2% in February, and 96.3% in March. Macau also said monthly gross gaming revenue declined 11.3%, 87.8%, and 79.7% for January, February and March, respectively.

Amid the pandemic, Sands China said it estimates a monthly run-rate of operating costs of about $110 million, development and maintenance capital expenditures of about $65 million and interest expense of about $25 million. The company isn't paying a dividend for 2019 to cut costs.

The subsidiary as of May 29 had $2.41 billion in liquidity comprising $801 million in cash and cash equivalents as well as $1.61 billion in available borrowing capacity, it said. That is enough to fund its operations for 12 months in this environment, according to Sands China.

Sands China said the pandemic's effect on its results, cash flows and financial condition will be material for the year.

"It is unknown when the COVID-19 pandemic will end, when or how quickly the current travel restrictions will be modified or cease to be necessary and the resulting impact on the willingness of SCL's customers to spend on travel and entertainment," it said.