Sands China optimistic despite US$1.5b loss

Sands China (1928) widened its net loss by 50.5 percent to US$1.58 billion (HK$12.4 billion) last year from a year ago but said early indications of recovery over the past few weeks were "all positive."

In the fourth quarter, the net loss for the casino hub was US$348 million - compared with a loss of US$245 million in the corresponding period in 2021.

However, Robert Glen Goldstein, chief executive of Sands China's parent company Las Vegas Sands Corp, said prospects looked positive.

He said that the firm has seen a significant improvement in its property visitation, gaming volumes, retail sales and hotel occupancy over the last few weeks after travel restrictions were lifted.

The latest figures recorded over 90,000 visitors Tuesday - setting the highest single-day record since the Covid pandemic - and a total of 318,000 arrivals during the five-day Lunar New Year holiday started Saturday, representing a year-on-year increase of 3.14 times.

The world's biggest gambling hub has seen a resurgence of tourists from China since January 8 when it dropped all Covid testing requirements for inbound travelers from the mainland, Hong Kong and Taiwan.

Goldstein said the firm is committed to investing in Macau, adding that its US$3.8 billion commitment is just a baseline before further investments.

Shares of Sands China, however, retreated 2.2 percent to HK$29.35 after an earlier gain of over 5 percent.

Other gaming stocks also fell, with Wynn Macau (1128) slumping 5 percent. MGM China (2282) dropped 4.1 percent while Galaxy Entertainment (0027) edged down 1 percent.

But analysts forecast a recovery of Macau gaming shares this year.

Citibank said surging tourists will speed up the recovery in gross gaming revenue which may rise by 26 percent year-on-year to reach 8 billion patacas (HK$7.76 billion) this month - though it would be less than one-third of the pre-pandemic level in January 2019.

Goldman Sachs maintained a buy rating for Sands China, with a target price of HK$36 as its financial results were in line with expectations.