Sands China (1928) H2 2025 earnings summary

Executive summary

• Net revenues rose 5.1% year-over-year to US$7.44 billion, driven by increased visitation and tourism spending in Macao, though profit declined 14.3% to US$896 million due to higher operating and marketing expenses.

• Adjusted property EBITDA was US$2.31 billion, down 0.7% year-over-year, reflecting increased costs despite revenue growth.

• Major capital investments continued, including the completion of The Londoner Macao Phase II and ongoing diversification efforts in non-gaming amenities.

Financial highlights

• Casino revenues increased 4.4% to US$5.58 billion, with notable growth at The Londoner Macao but declines at The Venetian Macao and The Parisian Macao.

• Room revenues rose 10.2% to US$853 million, driven by higher occupancy and rates, especially at The Londoner Macao.

• Mall revenues grew 5.7% to US$521 million, with strong performance at Shoppes at Venetian and Londoner.

• Food and beverage revenues increased 3.8% to US$270 million; convention, ferry, retail, and other revenues rose 4.3% to US$216 million.

• Operating expenses increased 8.7% to US$6.21 billion, mainly due to higher casino, payroll, and marketing costs.

• Net finance costs fell 13.7% to US$366 million, reflecting lower borrowings and interest rates.

• Earnings per share were US11.08 cents, down from US12.91 cents in the prior year.

Outlook and guidance

• Management remains confident in Macao’s long-term growth, with a committed US$4.5 billion investment through 2032 focused on non-gaming projects.

• Anticipates continued benefit from infrastructure improvements and rising tourism in the Greater Bay Area.

• Plans to increase dividends as cash flow grows, supported by strong liquidity and available borrowing capacity.