Sands China (1928) H1 2025 earnings summary

Executive summary

• Net revenues for H1 2025 were US$3.49 billion, down 1.7% year-over-year, mainly due to a 3.0% drop in casino revenues amid increased competition in Macao.

• Adjusted property EBITDA for H1 2025 was US$1.10 billion, down 5.9% year-over-year, reflecting lower casino and food and beverage revenues.

• Profit for H1 2025 was US$413 million, a 23.7% decline from US$541 million in H1 2024.

• The Londoner Grand conversion was completed in Q1 2025, adding 2,405 rooms and suites and enhancing the property’s competitive positioning.

• Interim dividend of HK$0.25 per share (US$0.032) declared, totaling US$258 million, payable September 2025.

Financial highlights

• Casino revenues fell 3.0% year-over-year to US$2.62 billion, with declines at The Venetian Macao, The Parisian Macao, and Sands Macao, partially offset by growth at The Londoner Macao.

• Room revenues increased 3.3% to US$406 million, driven by higher occupancy and revenue per available room.

• Mall revenues rose 7.8% to US$249 million, mainly due to higher overage and base rents.

• Food and beverage revenues declined 8.9% to US$123 million, mainly from lower banquet and outlet volumes.

• Operating expenses increased 1.5% to US$2.91 billion, driven by higher employee benefits, FX losses, and depreciation.

• Net finance costs decreased 11.4% to US$195 million, reflecting lower borrowings and interest rates.

• Basic and diluted EPS for H1 2025 were US5.10 cents, down from US6.69 cents in H1 2024.

Outlook and guidance

• The company continues to focus on reinvesting in its integrated resort portfolio and enhancing offerings to remain competitive.

• Management expects sufficient liquidity and borrowing capacity to meet financial covenants, obligations, and fund planned capital expenditures.

• Macao visitation from mainland China rose 19.3% and gross gaming revenue increased 4.4% year-over-year for H1 2025.