Sands China has released its financial results for the second quarter of 2024, revealing a nuanced picture of its performance across its properties in Macau and Singapore. While net revenues showed a year-on-year increase, there were notable sequential declines.
Financial Highlights
For the three months ending June 30, 2024, Sands China reported net revenues of USD 1.75 billion, reflecting a 7.7% increase from the same period in 2023. However, this figure represents a 3.3% decline from the previous quarter. The company’s Adjusted Property EBITDA came in at USD 561 million, up 3.7% year-on-year but down 8.0% sequentially. Net income for the quarter was USD 246 million, marking a 31.6% year-on-year increase but a 17.2% decline from the first quarter of 2024.
The Venetian Macao
The Venetian Macao, Sands China’s flagship property, experienced the most significant sequential decline. Net revenues dropped to USD 686 million from USD 771 million in Q1 2024. This decrease underscores the challenges faced by the property despite its historically strong performance.
The Londoner Macao
The Londoner Macao, still undergoing renovations, also saw a considerable sequential revenue decline. Net revenues fell from USD 562 million in Q1 to USD 444 million in Q2. The ongoing renovations are likely impacting the property’s performance, contributing to this downturn.
The Parisian Macao
In contrast, The Parisian Macao bucked the trend with a notable improvement. The property reported a 15.2% increase in revenues, rising to USD 265 million from the previous quarter. This growth indicates a robust recovery and enhanced performance relative to other properties.
The Plaza and Four Seasons
The Plaza and Four Seasons saw a significant revenue boost, with net revenues increasing to USD 250 million from USD 142 million in Q1. This positive performance highlights the strength and appeal of these properties within Sands China’s portfolio.
Marina Bay Sands Performance
In Singapore, Marina Bay Sands experienced mixed results. Net revenues reached USD 1.02 billion, marking a 9.8% increase year-on-year but a 12.3% decrease sequentially. Adjusted Property EBITDA stood at USD 512 million, up from USD 432 million a year ago but down from USD 592 million in Q1 2024. The performance at Marina Bay Sands was influenced by ongoing construction work, which has impacted its operational results.
Despite these challenges, Marina Bay Sands benefited from a positive USD 64 million impact from high VIP hold. The property’s financial and operational performance remains strong, supported by the introduction of new suite products and elevated service offerings.
Strategic Outlook and Investments
Robert Goldstein, Chairman and CEO of Sands China’s parent company, Las Vegas Sands, emphasized the ongoing recovery in Macau and Singapore. He highlighted that visitation levels remain below pre-pandemic figures, yet the company’s strategic investments aim to enhance Macau’s appeal as a global tourism destination.
Goldstein expressed optimism about the company’s prospects, citing substantial capital investment programs in both Macau and Singapore. He also noted that the strong financial and operational performance of Marina Bay Sands, despite current challenges, positions the property for future growth as travel and tourism spending in Asia continues to advance.
Share Repurchase Program
During the quarter, Sands China repurchased USD 400 million in LVS shares under its share repurchase program. This move reflects the company’s commitment to returning excess capital to stockholders while maintaining financial strength and supporting ongoing investments.
Sands China’s second-quarter 2024 results present a mixed picture of performance across its portfolio. While year-on-year revenue growth is positive, sequential declines highlight the challenges faced by the company amid ongoing renovations and construction. The diverse performance across properties underscores the need for targeted strategies to address specific challenges and leverage growth opportunities.