Sands China pays for earnings hit

Melody Chen

Shares of Sands China (1928) fell up to 3.7 percent to HK$14.92, its lowest since November 2022, after the casino operator reported worse-than-expected second-quarter earnings.

Adjusted property earnings before interest, taxes, depreciation and amortization rose 3.7 percent to US$561 million (HK$4.38 billion), slightly short of an estimate of US$580 million.

Total net revenues increased 8 percent to US$1.75 billion compared to the same period last year, falling short of market expectations of US$1.767 billion.

Net income was US$246 million, up from US$187 million.

Parent company Las Vegas Sands reported that second-quarter capital expenditures amounted to US$285 million, including US$131 million for construction, development and maintenance in Macau.

"Turning to the results in Macau, solid EBITDA was delivered for the quarter despite material disruption at The Londoner Macau," said chairman and chief executive Robert Glen Goldstein.

The Ebitda margin for the parent company's Macau portfolio would have been 32.1 percent in the quarter, down 80 basis points from a year ago, due to the Londoner Grand being renovated and its 1,500 rooms being out of commission, said president Patrick Dumont.