Financial Performance - The total net revenue for the year ended December 31, 2024, was $7,080,000,000 (HK$54,990,000,000), an increase of 8.4% compared to $6,530,000,000 (HK$51,060,000,000) for the year ended December 31, 2023[8]. - The profit for the year ended December 31, 2024, was $1,050,000,000 (HK$8,120,000,000), representing a significant increase of 51.0% from $692,000,000 (HK$5,410,000,000) in the previous year[8]. - The adjusted property EBITDA for the year ended December 31, 2024, was $2,330,000,000 (HK$18,090,000,000), which is a 4.7% increase from $2,230,000,000 (HK$17,390,000,000) for the year ended December 31, 2023[8]. - The net revenue from the gaming segment was $5,350,000,000, up 10.4% from $4,840,000,000 in the previous year, primarily due to increased visitor volume[144]. - The total revenue from the hotel segment was $774,000,000, reflecting a 1.7% increase from $761,000,000, driven by higher occupancy rates[149]. - The non-gaming revenue from food and beverage increased by 8.3%, reaching $260,000,000, up from $240,000,000[143]. - Operating expenses rose to $5.714 billion, a 7.6% increase from $5.309 billion in 2023, attributed to higher business volumes across most categories[157]. - The average daily room rate for The Venetian Macao was $203, a decrease of 2.4% from $208 in 2023[151]. - The revenue per available room (RevPAR) for The Venetian Macao was $199, a 1.5% increase from $196 in the previous year[151]. Visitor Statistics - The company attracted a total of 95,000,000 visitors in 2024, averaging approximately 260,000 visitors per day[13]. - The number of visitors to Macau in 2024 was approximately 35,000,000, compared to 28,000,000 in 2023 and 6,000,000 in 2022[61]. - The company hosted approximately 652,000 visitors for incentive travel events in Macau, with around 580,000 attending 30 exhibitions and trade fairs[18]. - Total visitor numbers to Macau reached approximately 24,500,000 for the year ending December 31, 2024, an increase of about 28.6% compared to 2023[135]. - The Venetian Macao recorded approximately 31.6 million visitors in 2024, an increase from 30.3 million in 2023[118]. - The Londoner Macao had approximately 25.6 million visitors in 2024, up from 22.5 million in 2023[125]. - The Parisian Macao had a total of approximately 13,500,000 visitors in 2024, up from about 11,600,000 in 2023[127]. Investments and Developments - The company has invested approximately $17,000,000,000 to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[63]. - The company plans to invest about $4,500,000,000 in capital and operational investments in Macau during the current gaming license period from 2023 to 2032[63]. - The company has made significant progress on the post-completion works of The Londoner Macao, with a capital investment project expected to be completed in the second quarter of 2025[62]. - The company has committed to invest at least MOP 35,800,000,000 (approximately USD 4,480,000,000) in Macau, with a focus on non-gaming projects[187]. - The investment plan includes projects aimed at attracting foreign visitors, hosting exhibitions, entertainment performances, sports events, and enhancing Macau's reputation as a culinary capital[98]. - The company plans to expand its conference and exhibition capabilities by constructing a state-of-the-art venue connected to the existing Cotai Expo[102]. - A unique garden-themed attraction is planned to be developed next to The Londoner Macao, featuring a signature greenhouse and themed green spaces[102]. Corporate Governance and Management - The company has a board of directors consisting of eight members, with four being independent non-executive directors[30]. - The Chairman and non-executive director, Robert Glen Goldstein, has held various senior positions within the company since 2014, including CEO from January 2021 to January 2024[30]. - The Executive Vice Chairman and executive director, Wilfred Wong, has extensive experience in property development and has held senior management positions in several listed companies in Hong Kong[33]. - The CEO and president, Zheng Junuo, has been with the company since 2013 and previously worked at UBS Investment Bank for 14 years, overseeing various roles[37]. - The company has a strong focus on governance, with various committees including the remuneration committee and capital expenditure committee led by experienced directors[33]. - The company emphasizes the importance of financial management expertise within its board, ensuring compliance with regulatory standards[44]. - The company has a commitment to corporate governance, as evidenced by the roles of independent directors in various committees[42][44][49]. Legal Matters - The claim amount from Asian American Entertainment Corporation against the company is approximately $375 million, based on alleged breaches related to a joint bidding agreement[192]. - The claim amount was later increased to approximately $12.06 billion, covering lost earnings from 2004 to 2018, with rights reserved for further claims until 2022[194]. - The Macau Court ruled in favor of the company in April 2022, stating that the claims were malicious[196]. - The company continues to actively defend against the litigation and believes that it will not have a significant adverse effect on its financial condition or cash flow[199]. - The Macau Intermediate Court dismissed the plaintiff's appeal based on procedural defects, reaffirming the malicious nature of the claims[198]. - Management remains confident that the ongoing litigation will not materially affect the company's financial performance[199]. Market Position and Strategy - The company ranked first in market share for sold hotel rooms on major platforms including Ctrip, Alibaba's Fliggy, and Meituan in Macau[15]. - The company’s non-room revenue market share for dining and attraction tickets ranked first, with Meituan leading in dining product market share[15]. - The company is positioned to benefit from Macau's projected gross gaming revenue of MOP 226.78 billion (approximately USD 28.35 billion) in 2024, an increase of 23.9% from 2023[76]. - The company focuses on high-margin mass gaming operations, which accounted for 76% of market revenue in 2024, according to the Gaming Inspection and Coordination Bureau[79]. - The company continues to innovate its gaming product offerings to capture a larger market share across all customer segments in Macau[79]. - The company has established a significant presence in the retail sector with approximately 770 stores across 2.1 million square feet of retail space[71]. Awards and Recognition - The company received multiple awards in 2024, including the Best Integrated Resort in Asia Pacific from Travel + Leisure for the Macau Sands Resort[23]. - The company has been recognized as the best luxury hotel in Macau by the 2024 TTG China Travel Awards[27]. - The company has a platinum rating for its restaurant, 紫逸軒, in the 2024 Ctrip Reputation List for luxury restaurants[27]. - The company received multiple awards in 2024, including the "Best Luxury Hotel" in Macau from Travel + Leisure and a five-star rating from Forbes Travel Guide for the Four Seasons Hotel Macau[27]. Transportation and Visitor Experience - The company has invested in transportation networks to enhance visitor experience, including the "Cotai Water Jet" ferry service, which has been operational since November 2007[87]. - The "Cotai Water Jet" ferry service operates high-speed vessels with a capacity of over 400 passengers, with a maximum speed of approximately 42 knots[87]. - The company provides a fleet of over 110 luxury cars for its "Cotai Limousine" service, ensuring round-the-clock availability for VIP clients[89]. - The company operates 150 shuttle buses, including 34 owned and 116 leased, to facilitate transportation between its properties and key locations[90].

Financial Performance - The total net revenue for the year ending December 31, 2024, was $7,080,000,000, an increase of 8.4% compared to $6,530,000,000 for the year ending December 31, 2023[6]. - The profit for the year ending December 31, 2024, was $1,050,000,000, representing a 51.0% increase from $692,000,000 in the previous year[6]. - Adjusted property EBITDA for the year ending December 31, 2024, was $2,330,000,000, up 4.7% from $2,230,000,000 in 2023[6]. - The net revenue from gaming operations was $5,346,000,000, reflecting a 10.4% increase from $4,841,000,000 in the previous year, driven by increased visitor volume[21]. - The operating profit for the year ended December 31, 2024, was $1,366 million, compared to $1,225 million in 2023, reflecting improved operational efficiency[63]. - The company reported a net profit attributable to equity holders of $1,045 million for 2024, up from $692 million in 2023, marking an increase of approximately 50.9%[98]. - Basic earnings per share increased to $12.91 in 2024 from $8.56 in 2023, reflecting a growth of approximately 50.9%[98]. Visitor Statistics and Tourism - The number of visitors to Macau in 2024 was approximately 35,000,000, compared to 28,000,000 in 2023, marking a significant recovery in tourism[7]. - The total number of visitors from mainland China to Macau reached 24,500,000, an increase of approximately 28.6% compared to 2023[75]. Capital Investments and Projects - The company has invested approximately $17,000,000,000 to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[9]. - The company plans to invest about $4,500,000,000 in capital and operational investments in Macau during the current gaming license period from 2023 to 2032[11]. - The company is making significant progress on the Londoner project in Macau, with completion expected in the second quarter of 2025[8]. - The Londoner Macao will open on September 26, 2024, featuring 2,405 newly renovated rooms and suites, with a total estimated project cost of $1,200,000,000[19]. - The company announced the opening of The Londoner Macao's second phase on September 26, 2024, which will feature 2,405 rooms and suites, with an estimated total project cost of $1,200 million expected to be completed in the first half of 2025[58]. Revenue Breakdown - The gross gaming revenue in Macau for the year ending December 31, 2024, was approximately $28,350,000,000, an increase of about 23.9% compared to the previous year[15]. - The Venetian Macao's gaming revenue totaled $2,282,000,000, a 6.1% increase from $2,151,000,000, with non-rolling chip drop increasing by 6.8%[23]. - The Londoner Macao's gaming revenue reached $1,462,000,000, up 14.0% from $1,283,000,000, with a 16.2% increase in non-rolling chip drop[23]. - The Parisian Macao reported gaming revenue of $740,000,000, a 13.0% increase from $655,000,000, with a significant 28.8% rise in non-rolling chip drop[23]. - The total revenue from meetings, ferries, retail, and other sources was $207 million, a 15.6% increase from $179 million, attributed to higher visitor numbers[32]. Operating Expenses and Financial Metrics - Operating expenses for the year ended December 31, 2024, were $5.71 billion, a 7.6% increase from $5.31 billion, primarily due to increased expenses in gaming and other operational areas[33]. - The total loss on disposal of properties and equipment was $32 million, up from $12 million, mainly due to increased demolition costs related to renovations[34]. - Depreciation and amortization expenses decreased to $754 million, down 6.8% from $809 million, primarily due to reduced accelerated depreciation related to specific assets[33]. - The net cash generated from operating activities for the year ended December 31, 2024, was $2,070 million, a decrease from $2,290 million in 2023, primarily due to a $63 million cash outflow from working capital changes and $11 million in income tax payments[50]. - The net cash used in investing activities for the year ended December 31, 2024, was $810 million, mainly due to capital expenditures of $871 million, offset by $62 million in interest received[52]. - The net cash used in financing activities for the year ended December 31, 2024, was $658 million, primarily due to the repurchase of $174 million in outstanding principal of 2025 senior notes and interest payments of $398 million[53]. Debt and Financing - Net financing costs for the year ended December 31, 2024, were $424 million, down 20.3% from $532 million for the year ended December 31, 2023, primarily due to a decrease in average borrowing balances and average interest rates[39]. - The average interest rate decreased from 5.4% for the year ended December 31, 2023, to 4.9% for the year ended December 31, 2024, due to credit rating upgrades and changes in interest payment options[39]. - The company maintained a maximum debt to adjusted EBITDA ratio of 4.00 times and a minimum adjusted EBITDA to net interest expense ratio of 2.50 times throughout the financing period[46]. - The 2024 SCL credit facility provides HKD 19,500 million (approximately $2,510 million) in unsecured revolving credit financing, available until September 24, 2029[45]. - The 2024 SCL credit facility also includes HKD 12,950 million (approximately $1,670 million) in unsecured term loan financing, available until August 31, 2025, for repaying outstanding amounts under the 2025 senior notes[46]. Shareholder Information - The board proposed a final dividend of HK$0.25 per share for the year ended December 31, 2024, amounting to an estimated total of approximately $260 million[60]. - The proposed final dividend is expected to be paid on June 20, 2025, if conditions are met[123]. - The company will suspend share transfer registration from May 19, 2025, to May 22, 2025, to determine eligible shareholders for the annual general meeting[125]. - A second suspension of share transfer registration will occur on May 30, 2025, to identify shareholders eligible for the proposed final dividend[125]. Asset and Equity Position - The total assets as of December 31, 2024, were $11,169 million, an increase from $10,258 million in 2023, indicating growth in the company's asset base[67]. - The company reported a total equity of USD 1,031 million, compared to a loss of USD 4 million in the previous year[70]. - The total liabilities decreased slightly to USD 10,138 million from USD 10,262 million year-over-year[70]. - The total assets minus current liabilities amounted to USD 8,176 million, down from USD 8,886 million in the previous year[70]. Operational Developments - The newly renovated Venetian Theatre has reopened with a capacity of 14,000 seats, designed for large-scale live entertainment events[19]. - The company operates a total of 1,680 gaming tables and 3,700 slot machines across its properties[19]. - The total retail space across all properties is 2,127,000 square feet, with 769 retail outlets[18]. - Room revenue for the year ended December 31, 2024, was $774 million, an increase of 1.7% compared to $761 million for the year ended December 31, 2023, primarily due to increased occupancy rates[25]. - Total shopping center revenue decreased to $493 million, down 3.9% from $513 million, mainly due to a reduction in excess rent[28]. - Dining revenue increased to $260 million, an 8.3% increase from $240 million, driven by increased visitor volume and the addition of new dining establishments[32].

Investment Rating - The report maintains a "Buy" rating for Sands China (1928) with a target price of HKD 24.45, representing a potential upside of 41.5% from the current price of HKD 17.28 [2][4]. Core Insights - The fourth quarter of 2023 results met expectations, with net revenue of USD 1.76 billion, recovering to 79% of 2019 levels. The group's performance is expected to improve with the second phase of The Londoner project [4]. - The company demonstrated strong management capabilities and a popular product offering, which is expected to drive revenue and profit margin growth as the second phase of The Londoner is launched [4]. - The group holds approximately USD 1.97 billion in cash, with net debt reduced to USD 6.04 billion, indicating a solid financial position [4]. Financial Summary - Revenue for 2022 was USD 1.605 billion, with a projected increase to USD 6.534 billion in 2023, reflecting a 307.1% year-on-year growth. Forecasts suggest continued growth, reaching USD 8.539 billion by 2026 [3][5]. - EBITDA for 2022 was negative at USD 323 million, but is expected to turn positive in 2023 at USD 2.225 billion, with a projected EBITDA margin improvement over the next few years [3][5]. - Net profit is projected to recover from a loss of USD 1.582 billion in 2022 to a profit of USD 692 million in 2023, with further increases expected in subsequent years [3][5]. Operational Performance - The VIP segment saw a significant decline of 39.6% quarter-on-quarter, while the mass market segment grew by 2.1%. Retail operations also showed positive trends with an 8.8% increase in gross revenue [4]. - Hotel occupancy rates reached 98.9%, with an average room rate of USD 236, indicating strong demand in the hospitality sector [4]. - The group has launched new high-end gaming areas and additional hotel rooms, enhancing its competitive position in the market [4].

Investment Rating - Buy (Maintained) [1] Core Views - Sands China's 3Q24 performance slightly exceeded market expectations, with net revenue reaching $1.77 billion, slightly above the expected $1.74 billion, and recovering to 83.1% of the same period in 2019 [2] - The company's adjusted property EBITDA for 3Q24 was $590 million, in line with market expectations, recovering to 77.5% of the same period in 2019 [3] - The disruption from the Londoner Phase II renovation project is expected to peak in 4Q24, with 3,100-3,200 rooms temporarily closed, but the company remains confident in the recovery of EBITDA margins by 2025 [4] Financial Performance - Sands China's total gaming revenue in 3Q24 was $1.68 billion, recovering to 82.6% of the same period in 2019, with VIP and mass market (including slot machines) gaming revenues recovering to 40.4% and 94.2% of 2019 levels, respectively [1] - The company's gaming and non-gaming revenues in 3Q24 were $1.34 billion and $430 million, respectively, recovering to 80.2% and 97.3% of 2019 levels [2] - The adjusted property EBITDA margin in 3Q24 was 33.0%, down 2.7 percentage points from the same period in 2019, primarily due to the impact of the Londoner renovation and slower recovery in mass market gaming [3] Renovation Impact - The Londoner Phase II renovation project affected approximately 2,500 rooms in 3Q24, representing 63% of the Sheraton Grand Macao's rooms and 20% of the company's total room inventory [4] - The company expects the renovation disruption to peak in 4Q24, with 3,100-3,200 rooms temporarily closed, and only around 300 new suites remaining open [4] Future Outlook - Sands China's management is confident in the recovery of EBITDA margins by 2025, driven by the completion of the Londoner Phase II renovation in 2Q25 and the expected rebound in visitor numbers to Macau, particularly in the mass market segment [3] - The company's 2024-2026 revenue forecasts are maintained at $7.11 billion, $7.90 billion, and $8.39 billion, respectively, with adjusted property EBITDA forecasts of $2.27 billion, $2.75 billion, and $3.12 billion [4] - The current stock price implies 2024-2026 EV/EBITDA multiples of 9.6x, 7.9x, and 7.0x, respectively, with a target price of HKD 25.5, implying 2024-2026 EV/EBITDA multiples of 11.6x, 9.6x, and 8.5x [4]

Investment Rating - The report maintains a "Buy" rating for Sands China (1928 HK) with a target price raised to HKD 24.70, corresponding to a 2025 EV/EBITDA of 12x [2][7]. Core Views - The completion of renovations is imminent, which is expected to recover lost market share as previously diverted customers return. The Sheraton hotel will be transformed into the first luxury hotel under the Marriott brand (Londoner Macao), offering 2,405 new rooms and suites, enhancing synergy with the other two Londoner hotels. The entertainment venue, Galaxy Macau, will also reopen after renovations in December [2][3]. - The company may restart dividend payments earlier than expected, with a potential dividend of around HKD 1 for 2025 if the previous payout ratio of approximately 5% is maintained [4]. - The recent performance of the stock has been affected by low allocation from funds, indicating a potential need for reallocation in the future [2]. Summary by Sections Renovation and Market Recovery - The imminent completion of renovations is expected to enhance Sands China's capacity to attract customers, recovering market share lost during the renovation period. The reopening of the entertainment venue and the transformation of the Sheraton hotel into a luxury Marriott property are key factors in this recovery [3][4]. Dividend Expectations - With the business returning to normal post-pandemic, there is an expectation that dividends may be reinstated sooner. Historically, Sands China paid an annual dividend of HKD 1.99 per share from 2014 until the pandemic, and if this trend resumes, the 2025 dividend could be around HKD 1 [4][5]. Financial Projections - The report provides financial forecasts indicating significant revenue growth from HKD 51,057 million in 2023 to HKD 72,806 million by 2026, with a projected EBITDA of HKD 21,032 million in 2025 [6][12]. - The report also highlights a structural shift in the Macau gaming market, moving from high-end to mid-tier customers, which may influence future revenue streams [4][5].

Financial Performance - For the six months ended June 30, 2024, adjusted property EBITDA was $1,170,000,000, an increase of 24.7% compared to $939,000,000 for the same period in 2023[4]. - Net revenue for the six months ended June 30, 2024, was $3,550,000,000, up 22.7% from $2,900,000,000 in the same period of 2023[4]. - Profit for the six months ended June 30, 2024, was $541,000,000, a significant increase of 209.1% compared to $175,000,000 in the same period of 2023[4]. - The total net revenue from the Macau Venetian reached $1,194 million, an increase of 23.2% compared to $969 million in the same period last year[11]. - The total revenue from slot machines was $3,038 million, reflecting a 27.6% increase from $2,380 million[11]. - The total revenue from shopping centers was $231 million, up 3.1% from $224 million, primarily due to increased occupancy rates and base rents[15]. - The total revenue from the Macau Parisian was $3,170 million, reflecting a 51.9% increase from $2,087 million[11]. - The total net revenue from the Macau Palace was $248 million, a decrease of 4.2% from $259 million[11]. - The company reported a significant increase in user data engagement, with a 15% rise in customer visits across its properties compared to the previous year[90]. - The company reported a significant recovery in performance post-COVID-19, with a year-on-year increase in revenue of 45% for the first half of 2024[126]. Visitor Statistics - The total number of visitors from mainland China to Macau for the six months ended June 30, 2024, was 11,500,000, representing an increase of approximately 52.9% year-over-year[6]. - User data indicated a 30% increase in the number of visitors to the integrated resorts compared to the previous year, reflecting a strong rebound in tourism[127]. - The company reported a significant increase in visitor numbers, with a total of 1.5 million entries recorded in the last quarter, representing a 25% increase year-over-year[132]. Capital Expenditures and Investments - The company plans to invest MOP 35,800,000,000 (approximately $4,450,000,000) in capital and operational projects until 2032, including MOP 33,360,000,000 (approximately $4,150,000,000) for non-gaming projects[7]. - The ongoing development of The Londoner Macao Phase II includes renovations and upgrades, with an estimated total cost of $1,200,000,000, expected to be completed by early 2025[7]. - Total capital expenditures for the six months ended June 30, 2024, amounted to $218 million, a significant increase from $79 million in the same period of 2023[32]. - The company is investing $200 million in new technology for gaming operations, aiming to improve customer engagement and streamline services[128]. - The company plans to allocate $102 million to statutory reserves, which is 10% of the after-tax profit for the year ended December 31, 2023[82]. Revenue Segments - The company’s net revenue from gaming for the six months ended June 30, 2024, was $2,700,000,000, a 24.8% increase from $2,160,000,000 in the same period of 2023[10]. - The revenue from the gaming segment for the six months ended June 30, 2024, was $2,698 million, up from $2,161 million in the same period of 2023, representing a growth of 24.9%[90]. - Restaurant revenue increased to $135 million, a 29.8% rise from $104 million, driven by higher business volume in dining and banquet services[18]. - Retail and other revenue reached $94 million, a 38.2% increase from $68 million, driven by increased visitor demand[18]. Operating Expenses - Operating expenses totaled $2.863 billion, a 16.3% increase from $2.462 billion, primarily due to increased visitor volume in Macau[19]. - Gaming expenses rose to $1.75 billion, a 23.2% increase from $1.42 billion, attributed to higher gaming tax from increased revenue[20]. Debt and Financing - Net financing costs for the six months ended June 30, 2024, were $220 million, down 23.3% from $287 million in the same period in 2023[25]. - The company repurchased $175 million of its 5.125% senior notes due August 8, 2025, resulting in a gain of approximately $1 million from early debt repayment[27]. - The capital debt ratio decreased to 92.2% as of June 30, 2024, down from 100.1% at the end of 2023, primarily due to the repurchase of $175 million in outstanding principal of 2025 senior notes[39]. - The net debt as of June 30, 2024, was $6.213 billion, a decrease from $6.809 billion at the end of 2023[39]. Corporate Governance - The company has established principles and guidelines to ensure high standards of corporate governance, which are crucial for creating shareholder value and managing stakeholder interests[44]. - The board of directors has confirmed compliance with the company's code of conduct and standard code throughout the reporting period ending June 30, 2024[46]. - The company has adopted several best practices in corporate governance as per the code, ensuring investor confidence in management responsibilities[44]. Shareholder Information - As of June 30, 2024, major shareholder VVDI (II) holds 5,748,281,984 shares, representing approximately 71.02% of the company's issued share capital[60]. - The company has no knowledge of any major shareholders holding any short positions in the company's shares as of June 30, 2024[60]. - The company did not declare an interim dividend for the six months ended June 30, 2024[35]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance customer experience and operational efficiency[92]. - Future guidance includes a target of achieving $1.5 billion in total revenue for the fiscal year 2024, reflecting a robust recovery trajectory[127]. - The company is exploring potential acquisitions to further strengthen its market position and diversify its offerings[132].

Financial Performance - For the six months ended June 30, 2024, the adjusted property EBITDA was $1,170,000,000, an increase of 24.7% compared to $939,000,000 for the same period in 2023[2] - The total net revenue for the six months ended June 30, 2024, was $3,550,000,000, representing a 22.7% increase from $2,900,000,000 in the prior year[2] - The profit for the six months ended June 30, 2024, was $541,000,000, a significant increase of 209.1% compared to $175,000,000 in the same period of 2023[2] - The net revenue for the six months ended June 30, 2024, was $3,551 million, an increase of 22.7% compared to $2,895 million for the same period in 2023[31] - The operating profit for the same period was $688 million, up from $433 million, reflecting a significant increase in profitability[31] - The company reported a profit attributable to equity holders of $541 million for the six months ended June 30, 2024, significantly up from $175 million in the same period of 2023, representing a growth of about 209.1%[41] - Basic earnings per share for the six months ended June 30, 2024, were 6.69 cents, compared to 2.16 cents for the same period in 2023[31] - The company recorded a tax benefit of $43 million for the six months ended June 30, 2024, compared to $2 million in the same period of 2023[45] Visitor Statistics - The total number of visitors from mainland China to Macau for the six months ended June 30, 2024, was 11,500,000, an increase of approximately 52.9% year-over-year[3] - The number of visitors from mainland China to Macau increased by approximately 52.9% to 11.5 million for the six months ended June 30, 2024, compared to the same period in 2023[36] Gaming Revenue - The gross gaming revenue in Macau for the same period was MOP 113,800,000,000 (approximately $14,140,000,000), up about 41.9% from the previous year[3] - The net revenue from gaming operations for the six months ended June 30, 2024, was $2,700,000,000, reflecting a 24.8% increase from $2,160,000,000 in the prior year[6] - The gross gaming revenue for the same period was approximately $14.14 billion, an increase of about 41.9% compared to the previous year[36] Revenue Breakdown - Room revenue for the same period was $393,000,000, a 16.3% increase from $338,000,000 in the previous year[8] - The company reported a 29.8% increase in food and beverage revenue, reaching $135,000,000 compared to $104,000,000 in the previous year[5] - Total room revenue for The Venetian Macao reached $102 million, a 17.2% increase from $87 million[9] - Total shopping center revenue increased to $231 million, a 3.1% rise from $224 million, driven by higher rental rates[10] - Total shopping center revenue for The Venetian Shopping Center was $108 million, a 4.9% increase from $103 million[11] - Total room revenue for The Londoner Macao reached $166 million, a 23.0% increase from $135 million[9] - Total revenue from meetings, ferries, retail, and other services was $94 million, a 38.2% increase from $68 million, driven by increased visitor demand[13] - The Macau Venetian generated net revenue of $1,457 million for the six months ended June 30, 2024, up from $1,211 million in the same period of 2023, reflecting a growth of approximately 20.3%[39] - The Macau Londoner reported net revenue of $1,006 million for the six months ended June 30, 2024, compared to $685 million in the same period of 2023, marking an increase of around 46.8%[39] - The EBITDA for the Macau Parisian was $154 million for the six months ended June 30, 2024, compared to $120 million in the same period of 2023, showing an increase of approximately 28.3%[41] - The company’s revenue from ferry and other businesses was $55 million for the six months ended June 30, 2024, compared to $41 million in the same period of 2023, indicating an increase of approximately 34.1%[39] Capital Expenditures and Investments - The company plans to invest MOP 35,800,000,000 (approximately $4,450,000,000) in capital and operational projects until 2032, including MOP 33,360,000,000 (approximately $4,150,000,000) for non-gaming projects[4] - The ongoing development of The Londoner Macao Phase II is expected to cost approximately $1,200,000,000 and is anticipated to be completed by early 2025[4] - Capital expenditures for the six months ended June 30, 2024, amounted to $218,000,000, compared to $79,000,000 in the same period of 2023[24] - The company has contracted but unrecognized capital expenditures of $710,000,000 as of June 30, 2024, compared to $510,000,000 as of December 31, 2023[25] - The company is continuing the Phase II development of The Londoner Macao, with an estimated total cost of $1,200,000,000, expected to be completed in early 2025[26] Debt and Financing - Net financing costs for the six months ended June 30, 2024, were $220,000,000, down from $287,000,000 in the same period of 2023, reflecting a decrease in interest and other financing costs by $65,000,000[17] - The capital debt ratio decreased to 92.2% as of June 30, 2024, down from 100.1% at the end of 2023, primarily due to the repurchase of $175 million in outstanding preferred notes and an increase in total equity by $531 million[29] - The total liabilities as of June 30, 2024, were $10,028 million, down from $10,262 million at the end of 2023, indicating a reduction in overall debt levels[34] - The total borrowings amount to $8,153 million as of June 30, 2024, compared to $8,328 million as of December 31, 2023, indicating a decrease of approximately 2.1%[53] - The company repurchased $1.8 billion of outstanding principal amount of 5.125% senior notes due August 8, 2025, resulting in a gain of approximately $1 million from early debt repayment[54] - The available borrowing limit under the 2018 SCL credit facility is $2.5 billion as of June 30, 2024, slightly up from $2.49 billion as of December 31, 2023[55] - The company has complied with all debt covenants under the 2018 SCL credit facility as of June 30, 2024[55] - The company’s credit rating was upgraded to BBB- by Fitch on February 1, 2024, leading to a 0.25% reduction in the annual interest rate on outstanding senior notes[54] Corporate Governance and Compliance - The company has maintained a high level of corporate governance, adhering to all code provisions and adopting several best practice recommendations[56] - The audit committee reviewed the accounting policies and the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[59] - The company adopted revised international financial reporting standards with no significant impact on its operating performance and financial position[37] Dividends - The board of directors did not recommend an interim dividend for the six months ended June 30, 2024[27] - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, nor an interim dividend for the six months ended June 30, 2024[48] Assets and Equity - The total assets as of June 30, 2024, amounted to $10,555 million, compared to $10,258 million at the end of 2023, indicating growth in the asset base[34] - The total equity attributable to the company's shareholders was $527 million as of June 30, 2024, compared to a loss of $4 million at the end of 2023[34] - Trade receivables as of June 30, 2024, were $160 million, down from $222 million as of December 31, 2023[49] - Trade payables and other payables as of June 30, 2024, totaled $1,294 million, slightly down from $1,299 million as of December 31, 2023[51] - As of June 30, 2024, the company's trade payables aging analysis shows $40 million in the 0 to 30 days category, up from $39 million as of December 31, 2023[53]

Investment Rating - The report maintains a "Buy" rating for Sands China with a target price of HKD 24.25, corresponding to a 14x EV/EBITDA for 2024 [2][4]. Core Insights - Sands China's Q2 2024 performance met expectations, with net revenue increasing by 8.0% year-on-year to USD 1.75 billion, recovering to 82% of 2019 levels [1][2]. - The VIP segment saw a significant quarter-on-quarter growth of 40.4%, while the mass market segment experienced a decline of 3.4% [1]. - The report highlights the ongoing renovations at The Londoner, which are expected to enhance profitability post-completion, despite short-term impacts [2][4]. Summary by Relevant Sections Financial Performance - Q2 2024 net profit decreased by 17.2% to USD 246 million, with adjusted EBITDA down 8.0% to USD 561 million, recovering to 73% of 2019 levels [1][2]. - The hotel occupancy rate was reported at 95%, with an average room rate of USD 201 [1]. - For the fiscal year ending December 31, 2024, revenue is projected to reach USD 7.30 billion, with a year-on-year growth of 11.7% [3][4]. Operational Highlights - The report details the performance of various properties, with revenue recovery rates for The Venetian, The Londoner, and others ranging from 50% to 119% of 2019 levels [1]. - The renovation budget for The Londoner Phase II is set at USD 1.2 billion, with completion expected to enhance the competitive edge and profit margins of Sands China [2][4]. Market Position - Sands China is positioned as the largest integrated resort operator in Macau, holding a leading position in both mass and non-gaming segments [2][4]. - The report expresses confidence in the long-term growth prospects of the company, driven by strategic renovations and market recovery [2].

Investment Rating - The report maintains a "Buy" rating for Sands China Limited, with a target price adjusted from HKD 28.5 to HKD 19.5, corresponding to a 10x EV/EBITDA for 2025 [10]. Core Insights - Sands China's Q2 2024 net revenue was USD 1,754 million, reflecting a year-on-year increase of 7.7% but a quarter-on-quarter decrease of 3.1%. Adjusted EBITDA was USD 561 million, up 3.7% year-on-year but down 8% quarter-on-quarter, recovering to 73.3% of 2019 levels [1][9]. - The company's gaming revenue forecasts for 2024, 2025, and 2026 have been revised downwards to HKD 535 billion, HKD 604 billion, and HKD 693 billion, respectively, indicating recoveries to 80%, 90%, and 103% of 2019 levels [9][10]. - The report highlights that the recovery of VIP and mass market gaming revenues is lagging behind the industry, with VIP revenue at USD 179 million, recovering to 32% of 2019 levels, compared to the industry average of 38% [2][3]. Summary by Sections Financial Performance - Q2 2024 adjusted EBITDA margin was 32%, lower than the margins of 36.1%, 33.2%, and 33.7% in Q2 2019, Q2 2023, and Q1 2024, respectively [1][9]. - The company did not declare dividends for Q2 2024 due to ongoing performance challenges [9]. Revenue Breakdown - Q2 2024 gaming revenue was USD 1,710 million, a year-on-year increase of 13.8% and flat quarter-on-quarter, recovering to 81.2% of Q2 2019 levels, surpassing the industry recovery of 77% [2]. - Mass market gaming revenue was USD 1,365 million, recovering to 98% of 2019 levels, while slot machine revenue reached USD 166 million, recovering to 103.3% of 2019 levels [2]. Operational Challenges - The ongoing property renovations are expected to impact revenue in the short term, with the Venetian's performance being notably affected [3][10]. - The company plans to invest at least USD 4.5 billion in Macau by 2032, with 93% allocated to non-gaming projects [3]. Visitor Trends - Visitor numbers to Macau in the first half of 2024 exceeded expectations, reaching 16.72 million, which is 82.4% of 2019 levels, with mainland tourists being the primary contributors [4]. Future Projections - The report projects that the gaming gross revenue (GGR) for the industry is expected to recover to 79% and 86% of 2019 levels in 2024 and 2025, respectively [4]. - Sands China's EBITDA is forecasted to recover to 75%, 85%, and 100% of 2019 levels in 2024, 2025, and 2026, respectively [10].

Investment Rating - The report maintains a "Buy" rating for Sands China Limited with a target price of HKD 30.7 [4] Core Views - Sands China achieved total gaming revenue of USD 1.71 billion in Q1 2024, recovering to 73.2% of the same period in 2019 [2] - The company's net revenue for Q1 2024 was USD 1.81 billion, slightly below Bloomberg consensus of USD 1.86 billion, with a quarter-on-quarter decline of 2.8% [3] - Adjusted property EBITDA for Q1 2024 was USD 610 million, also below Bloomberg consensus of USD 640 million, with a quarter-on-quarter decline of 6.7% [3] - The report anticipates that the renovation of the Londoner Phase II and the Galaxy Macau will impact the company's performance in 2024 [3] Financial Forecasts - The projected total revenue for Sands China is USD 7.95 billion in 2024, USD 8.52 billion in 2025, and USD 9.02 billion in 2026, reflecting year-on-year growth rates of 307.1%, 21.7%, and 7.1% respectively [2][4] - Adjusted property EBITDA is expected to be USD 2.77 billion in 2024, USD 3.03 billion in 2025, and USD 3.30 billion in 2026 [4] - The earnings per share (EPS) forecast is USD 0.18 for 2024, USD 0.22 for 2025, and USD 0.26 for 2026 [4] Market Data - The closing price of Sands China shares is HKD 18.88, with a one-year low of HKD 18.54 and a high of HKD 31.45 [5] - The company has a market capitalization of HKD 152.8 billion [5]