Sands China (1928) H2 2024 earnings summary

Executive summary

• Net revenues rose 8.4% year-over-year to US$7.08 billion, driven by strong recovery in Macao tourism and gaming.

• Profit increased 51.0% to US$1.05 billion, reflecting higher operating income and lower finance costs.

• Adjusted property EBITDA grew 4.7% to US$2.33 billion, supported by increased visitation and diversified revenue streams.

• Major capital projects advanced, including substantial completion of The Londoner Macao Phase II and reopening of the Venetian Arena.

• Final dividend of HK$0.25 per share (US$260 million total) proposed for 2024.

Financial highlights

• Casino revenues up 10.4% to US$5.35 billion; room revenues up 1.7% to US$774 million; mall revenues down 3.9% to US$493 million.

• Operating profit increased to US$1.37 billion from US$1.23 billion year-over-year.

• Net finance costs fell 20.3% to US$424 million due to lower borrowings and interest rates.

• Earnings per share rose to US12.91 cents from US8.56 cents.

• Operating expenses increased 7.6% to US$5.71 billion, mainly from higher casino and support costs.

Outlook and guidance

• Management remains optimistic on Macao’s continued tourism and gaming recovery, supported by infrastructure and policy tailwinds.

• Substantial completion of The Londoner Macao and further capital investments expected in 2025.

• Committed to investing US$4.5 billion in Macao through 2032, with a focus on non-gaming diversification.