Sands China (1928) H1 2024 earnings summary

Executive summary

• Net revenues rose 22.7% year-over-year to US$3.55 billion for the six months ended June 30, 2024, driven by recovery in visitation and tourism spending in Macao.

• Adjusted property EBITDA increased 24.7% to US$1.17 billion, reflecting strong performance across gaming, non-gaming, and all business categories.

• Profit surged 209.1% to US$541 million, supported by higher revenues and improved operating leverage.

Financial highlights

• Casino revenues grew 24.8% year-over-year to US$2.70 billion, with increases in table games and slot volumes.

• Room revenues rose 16.3% to US$393 million, supported by higher occupancy rates despite lower average daily rates.

• Mall revenues increased 3.1% to US$231 million, with higher occupancy and base rent.

• Food and beverage revenues climbed 29.8% to US$135 million; convention, ferry, retail, and other revenues up 38.2% to US$94 million.

• Operating expenses increased 16.3% to US$2.86 billion, mainly due to higher business volume and gaming taxes.

• Net finance costs decreased 23.3% to US$220 million, reflecting lower interest rates and debt repayment.

Outlook and guidance

• Continued reinvestment in property portfolio and enhancement of hotels, restaurants, MICE space, and gaming areas.

• Ongoing development of Phase II of The Londoner Macao, with US$1.2 billion in projects expected to complete in early 2025.

• Management expects sufficient liquidity to fund operations, capital commitments, and compliance with debt covenants.

• The company is committed to invest US$4.45 billion through 2032, focusing on non-gaming projects.

• Macao visitation from mainland China increased 52.9% year-over-year; gross gaming revenue up 41.9%.