Sands China Q2 2024 revenue sees 8% increase despite ongoing renovation
Venetian Macau and Londoner Grand are the two Macau businesses undergoing renovations, estimated to be completed by the end of 2024.
Sands China has announced Q2 revenue increased 8% year-on-year to $1.75bn. Net income for Sands China was $246m for Q2 2024, compared to $187m in 2023.
Meanwhile, adjusted property EBITDA was $561m for Q2 2024, slightly up year-on-year from US$541m.
Factors affecting earnings were listed as 1) a weighted average borrowing cost at 5.0%, compared to 5.4% last year, and 2) capital expenditure of $285m, which included construction, development and maintenance activities of $131m in Macau.
Maintenance included the Londoner Grand renovation program, where a casino had to be temporarily closed during the renovation period; and the Cotai Arena of Venetian Macau.
The first phase of Londoner Grand’s renovation (which includes the first tower) is slated for completion by the end of this year and its casino will be re-opened by December 2024. The second phase (consisting of the second tower) will commence in 2025. Venetian Macau’s Cotai Arena will be back in operation by late 2024.
The completion of both renovations is expected to improve the company’s current EBITDA.
Recently, investment bank Citi predicted that combined EBITDA margins for the six biggest gaming concessionaires in Macau, which includes Sands, will hit an estimated 28%, remaining strong throughout 2024.
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