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Macau operator losses for 2020
Operator 2019 net profit 2020 net loss SJM Holdings HK $ 3.21bn HK $ 3.03bn Sands China US $ 2.03bn US $ 1.52bn
Melco Resorts & Entertainment
US $ 373.2bn
US $ 1.26bn
MGM China Holdings HK $ 1.93bn HK $ 5.20bn Galaxy Entertainment HK $ 13.13bn HK $ 3.91bn Wynn Resorts China HK $ 5.06bn HK $ 7.22bn
investment programmes will strengthen its leadership position in the market and will provide a larger platform for future growth as travel and tourism spending return ,” the operator said following the publication of its half-year results in August 2020 .
“ The group remains unwavering in its commitment to long-term investment in Macao ,” Sands added . “ The scale of its existing and ongoing investments enables the group to play its part in supporting the local economy in Macao , including its support of local employment and for small and medium-sized businesses .”
As if any further evidence of its commitment was needed , it effectively went ‘ all-in ’ on Macau , by selling off its Las Vegas properties . It divested the subsidiaries that operate its US business to funds held by the private equity business Apollo Global Management for $ 1.05bn in cash and $ 1.2bn in seller financing , through a loan credit and security agreement . The Venetian ’ s real estate and related assets are to be acquired by real estate investment trust VICI Properties for $ 4.0bn in cash .
“ This company is focused on growth , and we see meaningful opportunities on a variety of fronts ,” chairman and chief executive Robert Goldstein said . “ Asia remains the backbone of this company and our developments in Macau and Singapore are the centre of our attention .
“ We will always look for ways to reinvest in our properties and those communities .”
The rationale is simple . While Macau may take longer to recover , it has been built to cater for the Chinese consumer . As a result of travel restrictions , there may be less international travel from China , meaning Macau is the only option for many to go ‘ abroad ’.
“ They ’ ve got the perfect situation ,” Wieners says . “ If anyone wants to travel anywhere right now , Macau is their only option . China has created this ecosystem , where these people can do an ‘ international ’ trip to Macau . Going back to the feeder markets , any other markets , they don ’ t care – they don ’ t need them .”
He says that as long as the border with mainland China remains open , Macau could “ go on for years ” without international visitors .
“ That ’ s a very unique situation for them to be in , where they have this ecosystem to maintain prosperity . They ’ ve only recently opened up travel to foreigners that hold visas , so Macau is a great case study – they ’ ve been Covid-free for between six and eight
June 2021