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]

Financial Performance - Total net revenue for the year ended December 31, 2023, was $6,530,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[6]. - The profit for the year ended December 31, 2023, was $692,000,000, a turnaround from a loss of $1,580,000,000 for the year ended December 31, 2022[6]. - Adjusted property EBITDA for the year ended December 31, 2023, was $2,230,000,000, compared to an adjusted property EBITDA loss of $323,000,000 for the year ended December 31, 2022[6]. - Casino revenue reached $4,840,000,000, up 411.2% from $947,000,000 in the previous year, driven by increased visitor numbers[74]. - Room revenue increased to $761,000,000, a rise of 313.6% from $184,000,000, primarily due to higher occupancy rates and revenue per available room[77]. - The shopping center revenue was $513,000,000, reflecting a growth of 44.9% compared to the previous year[73]. - The total revenue from food and beverage services was $240,000,000, marking an increase of 258.2% year-over-year[73]. - Total operating expenses rose to $5.31 billion, reflecting a 91.8% increase from the prior year[83]. - The company reported a total unrestricted cash and cash equivalents of $1.36 billion and available borrowing capacity of $2.49 billion as of December 31, 2023[69]. Visitor Statistics and Tourism Initiatives - Approximately 90,000,000 visitors were received at the properties in 2023, reflecting a strong recovery in tourism and travel consumption[7]. - In 2023, Sands China properties attracted a total of 90 million visitors, averaging approximately 245,000 visitors per day[10]. - The company hosted over 70 live performance events in 2023, attracting more than 560,000 visitors[11]. - The company supported the Macao SAR government's "Tourism + MICE" strategy by hosting the "Discover Macao" event, attracting 200 MICE professionals from over 13 countries[7]. - The 2023 Sands Macao Carnival attracted over 420,000 visitors since its inception in 2020, showcasing the company's successful event strategy[8]. Market Position and Competitive Advantage - Sands China ranked first in market share for room sales and non-room revenue on major travel platforms in Macau, including Ctrip, Alibaba's Fliggy, Meituan, and Agoda[8]. - The company has a strong focus on corporate governance with experienced independent non-executive directors[26][27]. - The company holds a significant market share in the overall Macau gaming market, particularly in the mass gaming segment, which accounted for 75% of market revenue in 2023[39]. - The company benefits from operational scale efficiencies, which help maintain a cost advantage, including lower energy costs and effective staff allocation[38]. Leadership and Governance - The company has a board of directors consisting of eight members, including four independent non-executive directors[19]. - Robert Glen Goldstein serves as the Chairman of the Board and Non-Executive Director since January 2024[20]. - The company appointed Wilfred Wang as Executive Vice Chairman and Executive Director effective January 24, 2024[21]. - The company has a strong leadership team with extensive experience in various sectors, including finance and property development[21][22][24]. - The company is committed to maintaining high standards of financial reporting and compliance[27]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable practices through its "Green Meetings" initiative, part of the Sands Eco 360 global sustainability program[12]. - The company emphasizes its commitment to sustainable development and will publish an independent environmental, social, and governance report for the fiscal year ending December 31, 2023[136]. - The company achieved a 58% reduction in Scope 1 and 2 absolute greenhouse gas emissions compared to the 2018 baseline[138]. - The company has set a target to use 100% cage-free eggs by 2028[138]. - The company was included in the Dow Jones Sustainability World Index for the second consecutive year and ranked in the top 1% for ESG ratings in the S&P Global Sustainability Yearbook 2023[139]. Risks and Challenges - The company's business is particularly sensitive to economic downturns, affecting consumer discretionary spending on luxury facilities and services[107]. - The company faces risks related to compliance with anti-corruption laws, such as the FCPA, which could have a significant negative impact on its financial condition if violated[109]. - The company is exposed to risks from natural disasters, pandemics, and political instability, which could significantly disrupt operations and visitor numbers[107]. - The company faces significant competition from other casinos in Macau, with competitors announcing additional facilities, leading to increased market competition[114]. - The company is subject to extensive regulations and licensing requirements across multiple jurisdictions, which could adversely impact its operations if licenses are not obtained or renewed[109]. Investment and Development Plans - The company has invested over $15 billion to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[32]. - A new investment of $1.2 billion is planned for the Londoner Macao, expected to be completed by early 2025[33]. - The investment plan commits to a minimum investment of MOP 30,240,000,000 (approximately USD 3,760,000,000) in Macau, with MOP 27,800,000,000 (approximately USD 3,450,000,000) allocated for non-gaming projects, to be completed by December 2032[52]. - The company is required to invest in non-gaming projects if the gross gaming revenue exceeds MOP 180,000,000,000 (approximately USD 22,360,000,000) annually[52]. Corporate Structure and Shareholder Information - The company has a total issued share capital of 8,093,379,566 shares, with a statutory capital of 16,000,000,000 shares[128]. - The shareholder distribution shows that 64.65% of shareholders hold between 1-1,000 shares, while 99.976% of the issued shares are held by two shareholders with over 1,000,000 shares[129]. - Venetian Venture Development Intermediate II holds 69.91% of the company's shares, indicating a significant institutional investment[131]. - The company has entered into a shareholder dividend tax agreement with the Macau government, effective from the 2023 tax year until the 2025 tax year[118]. Operational Highlights - The company operates approximately 12,392 luxury suites and hotel rooms across its properties[34]. - The company operates several major integrated resorts in Cotai, featuring world-class hotel brands such as Four Seasons, St. Regis, Conrad, and Sheraton[35]. - The total number of restaurants and dining establishments across properties is 154, providing a wide range of culinary experiences[61]. - The company operates a fleet of over 100 luxury cars for its "Sands Limousine" service, providing 24/7 service for VIP clients[46]. Legal and Compliance Matters - The company is exposed to litigation, investigations, and enforcement actions that could result in substantial fines or penalties, impacting its financial performance[126]. - The company is required to allocate 5% of its gross gaming revenue to designated entities by the Macau government, including 2% for a public fund and 3% for urban development and tourism promotion[58]. - The company must maintain compliance with the Macau gaming authority's regulations regarding shareholder qualifications and financial reporting[54].

Investment Rating - Buy rating maintained for Sands China Ltd (1928 HK) with a market price of HKD 23 5 [1] Core Views - Sands China's performance turned profitable in 2023, in line with expectations The company is still in the recovery phase and is expected to benefit significantly from the strong rebound in Macau's tourism and gaming industry [3] - The recovery trend is evident, with performance meeting expectations In 2023, Sands China's net profit reached USD 692 million, and adjusted EBITDA was USD 2 225 billion, with Q4 EBITDA at USD 654 million and a margin of 35 1%, recovering to 80 6% of the same period in 2019 [4] - The high-end mass market led the recovery, and non-gaming businesses showed significant improvement In 2023, Sands China's total net revenue was USD 6 53 billion, with gaming revenue accounting for 74% (USD 4 84 billion) and non-gaming revenue contributing 26% (USD 1 81 billion) [4] - Sands China is the leader in Macau's gaming industry, with the largest supply of gaming tables, hotels, and shopping malls The company is expected to continue benefiting from the industry's recovery in 2024 [4] Financial Performance and Forecasts - Revenue in 2023 was USD 6 534 billion, a 307% YoY increase, and is expected to grow to USD 8 82 billion in 2024, USD 9 492 billion in 2025, and USD 9 573 billion in 2026 [2][4] - Net profit in 2023 was USD 692 million, a 144% YoY increase, and is forecasted to reach USD 2 049 billion in 2024, USD 2 424 billion in 2025, and USD 2 575 billion in 2026 [2][4] - EPS in 2023 was USD 0 09, and is expected to grow to USD 0 25 in 2024, USD 0 30 in 2025, and USD 0 32 in 2026 [2][4] - ROE in 2023 was -17,300%, but is expected to recover to 100 2% in 2024, 54 2% in 2025, and 36 6% in 2026 [2][4] Industry Recovery - Macau's gaming gross revenue in 2023 was MOP 183 1 billion, recovering to 63% of 2019 levels Quarterly breakdown shows recovery rates of 45% in Q1, 62% in Q2, 69% in Q3, and 75% in Q4 [4] - Visitor arrivals to Macau in 2023 reached 28 21 million, recovering to 72% of 2019 levels Quarterly recovery rates were 48% in Q1, 68% in Q2, 84% in Q3, and 90% in Q4 [4] Business Segments - Gaming: High-end mass market recovery led the way, with mass market table games revenue at USD 1 42 billion in Q4 2023, recovering to 97% of 2019 levels High-end mass contributed USD 685 million (101% of 2019), while regular mass contributed USD 732 million (93% of 2019) Slot machine revenue was USD 163 million, recovering to 101% of 2019 levels VIP gaming revenue was USD 130 million, recovering to 24% of 2019 levels [4] - Non-gaming: Significant recovery in non-gaming businesses, with hotel occupancy reaching 97 2% and average room rate at USD 197 Retail revenue was USD 156 million, recovering to 96% of 2019 levels [4] Future Outlook - Sands China's parent company, LVS, is increasing investment in Macau, with the Londoner Phase 2 project starting in November 2023, with an investment increase from USD 1 billion to USD 1 2 billion This will further optimize Sands China's supply and enhance customer spending [4] - The parent company plans to reduce leverage in the future, preparing for the resumption of dividends [4]

Financial Performance - The total net revenue for the year ended December 31, 2023, was $6,530,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[3]. - The profit for the year ended December 31, 2023, was $692,000,000, recovering from a loss of $1,580,000,000 in the previous year[3]. - Adjusted property EBITDA for the year ended December 31, 2023, was $2,230,000,000, compared to an adjusted property EBITDA loss of $323,000,000 for the year ended December 31, 2022[3]. - The company's total net revenue for the year ended December 31, 2023, was $6,534,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[11]. - The gaming segment generated net revenue of $4,840,000,000, up 411.2% from $947,000,000 in the previous year, driven by increased visitor numbers[12]. - The company’s revenue from the hotel segment reached $761,000,000, reflecting a 313.6% increase from $184,000,000 in the previous year[11]. - The shopping mall segment reported revenue of $513,000,000, a 44.9% increase from $354,000,000 year-over-year[11]. - The company’s food and beverage revenue was $240,000,000, which is a 258.2% increase from $67,000,000 in the previous year[11]. - The total net revenue from the Macau Venetian casino reached $2,151 million, a significant increase of 391.1% compared to $438 million in the previous year[13]. - The total revenue from slot machines was $5,066 million, reflecting a 347.5% increase from $1,132 million[13]. - For the fiscal year ending December 31, 2023, the company reported a profit of $692 million, compared to a loss of $1.58 billion for the fiscal year ending December 31, 2022[26]. - The total assets as of December 31, 2023, amounted to USD 10,258 million, a decrease from USD 10,562 million in the previous year[40]. - The total liabilities decreased to USD 10,262 million as of December 31, 2023, from USD 11,262 million in the previous year[41]. - The company did not recommend a final dividend for the year ending December 31, 2023[37]. - Basic and diluted earnings per share for the year ending December 31, 2023, are USD 8.56, compared to a loss of USD 19.55 in 2022[60]. Visitor and Market Trends - Visitor numbers to Macau exceeded 28,000,000 in 2023, a significant increase from approximately 6,000,000 in 2022 following the lifting of COVID-19 travel restrictions[4]. - The total gross gaming revenue in Macau increased by approximately 333.8% compared to 2022, although it decreased by about 37.4% compared to 2019[3]. - The total number of visitors from mainland China to Macau increased by approximately 273.1% compared to 2022 and decreased by about 31.8% compared to 2019[43]. - The company remains optimistic about future growth driven by rising demand for travel and entertainment in Asia[6]. Investments and Future Plans - The company has invested over $15,000,000,000 to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[5]. - A new investment of $1,200,000,000 has been announced for The Londoner Macao, expected to be completed by early 2025, aimed at enhancing customer experience[6]. - The company plans to increase capital and operational investments in Macau by $4,500,000,000 by 2032[6]. - The business strategy focuses on leveraging a convention-based integrated resort model to support Macau's diversification efforts[6]. - VML is required to invest at least MOP 30,240,000,000 (approximately USD 3,760,000,000) in Macau by December 2032, including MOP 27,800,000,000 (approximately USD 3,450,000,000) in non-gaming projects[36]. - VML must increase its investment in non-gaming projects by 20%, resulting in an additional investment of MOP 5,560,000,000 (approximately USD 691,000,000) due to Macau's total gaming gross revenue exceeding MOP 180,000,000,000 (approximately USD 22,360,000,000) for the year ending December 31, 2023[36]. - The company plans to expand its conference capabilities by constructing a new state-of-the-art venue covering approximately 18,000 square meters, aimed at making Macau a preferred destination for international corporate gatherings[36]. Operational Metrics - The company reported a total of 12,050 hotel rooms and suites across its properties as of December 31, 2023[9]. - The number of gaming tables operated by the company is currently permitted to be up to 1,680, with 3,700 slot machines available[10]. - The average daily room rate at the Venetian Macau increased by 45.5% to $208 from $143[16]. - The occupancy rate at the Londoner Macau reached 80.4%, up 53.5 percentage points from 26.9%[16]. - The total revenue for the Venetian Shopping Center reached $227 million, a 47.4% increase from $154 million in the previous year[18]. - The total revenue for the Londoner Shopping Center was $66 million, reflecting a 40.4% increase from $47 million[18]. - The total revenue for the Parisian Shopping Center amounted to $32 million, up 28.0% from $25 million[18]. - The company operates a total of 722 retail outlets across its properties[9]. Financial Position and Cash Flow - The company has a strong balance sheet with total unrestricted cash and cash equivalents of $1,360,000,000 and available borrowings of $2,490,000,000[3]. - The net cash generated from operating activities for the fiscal year ending December 31, 2023, was $2.29 billion, a significant increase from a net cash used of $473 million in the previous year[31]. - The company incurred a net cash outflow of $180 million from investing activities, primarily due to capital expenditures of $231 million[32]. - The net cash used in financing activities for the fiscal year was $2.45 billion, mainly due to the repayment of $1.95 billion under the 2018 SCL credit facility[33]. - Total capital expenditures for the year amounted to $231 million, with significant investments in properties such as the Londoner Macao ($131 million) and Venetian Macao ($71 million)[34]. - As of December 31, 2023, the total amount available under the revised and restated financing agreement was $2.49 billion after repayments of $1.95 billion[28]. - The company believes that its cash flow from operations, along with available credit, will be sufficient to meet its financial covenants and capital expenditure commitments[29]. - The company has contracted but not yet recognized liabilities for capital expenditures totaling $510 million as of December 31, 2023[35]. Governance and Compliance - The company has adhered to all provisions of the corporate governance code during 2023, ensuring high standards of corporate governance[78]. - The role of Chairman and CEO was held by Robert Glen Goldstein until January 24, 2024, when a separation of roles occurred, with Zheng Junuo appointed as CEO[79]. - The Audit Committee has reviewed the annual performance for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[83]. - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the stock exchange and the company's website[84]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[86].

Financial Performance - For the six months ended June 30, 2023, Sands China Ltd. reported an adjusted property EBITDA of $939 million (HK$7.36 billion), a significant recovery from an adjusted property EBITDA loss of $120 million (HK$942 million) in the same period of 2022[5]. - The total net revenue for the first half of 2023 was $2.9 billion (HK$22.69 billion), representing an increase of 216.4% compared to $915 million (HK$7.18 billion) in the first half of 2022[5]. - The company achieved a profit of $175 million (HK$1.37 billion) in the first half of 2023, a turnaround from a loss of $760 million (HK$5.96 billion) in the same period of 2022[5]. - Casino revenue for the six months ended June 30, 2023, was $2,161 million, up 280.5% from $568 million for the same period in 2022[16]. - The company reported a profit attributable to equity holders of $175 million, compared to a loss of $760 million in the prior year[83]. - Basic and diluted earnings per share for the current period were 2.16 cents, recovering from a loss of 9.39 cents per share in the previous year[82]. - The company reported a total comprehensive income of $171 million for the period, compared to a total comprehensive loss of $762 million in the previous year[83]. Revenue Breakdown - Room revenue increased to $338 million for the six months ended June 30, 2023, a 244.9% increase from $98 million for the same period in 2022[19]. - The total revenue from the shopping mall segment was $224 million, reflecting a 16.1% increase from $193 million in the previous year[15]. - The food and beverage segment generated $104 million, which is an increase of 181.1% compared to $37 million in the same period last year[15]. - The total revenue from meetings, ferries, retail, and other services was $68 million, marking a 257.9% increase from $19 million in the previous year[15]. - The Venetian Macao's casino revenue was $969 million, a 290.7% increase from $248 million in the same period last year[17]. - The Londoner Macao's casino revenue reached $479 million, up 295.9% from $121 million in the previous year[17]. - The Parisian Macao's casino revenue was $311 million, reflecting a 314.7% increase from $75 million in the same period last year[17]. Visitor Statistics - Macau's gross gaming revenue for the first half of 2023 reached MOP 80.1 billion (approximately $9.93 billion), an increase of 205.1% compared to the same period in 2022[9]. - The total number of visitors to Macau for the first half of 2023 was 11.6 million, reflecting a 236.1% increase compared to the same period in 2022[9]. - The Macau government reported that the total number of visitors from mainland China increased by approximately 141.0% compared to the same period in 2022 and decreased by about 47.3% compared to 2019[8]. Financial Position - The company has a strong balance sheet with total cash and cash equivalents of $1.23 billion and available borrowings of $1.74 billion under the 2018 SCL credit facility[8]. - As of June 30, 2023, the company held cash and cash equivalents totaling $1,230,000,000, primarily in HKD, USD, and MOP[33]. - The company reported a decrease in cash and cash equivalents of $468,000,000 for the six months ended June 30, 2023, compared to an increase of $91,000,000 in the same period in 2022[35]. - The company has capital commitments of $60,000,000 as of June 30, 2023, compared to $72,000,000 as of December 31, 2022[40]. - As of June 30, 2023, the net debt amounted to $7,654 million, a decrease of $526 million from December 31, 2022[45]. - The total capital as of June 30, 2023, was $7,128 million, down from $7,645 million as of December 31, 2022[45]. - The capital-to-debt ratio improved to 107.4% as of June 30, 2023, compared to 109.2% at the end of 2022[45]. Operational Developments - The construction of Phase II of The Londoner Macao is expected to commence in November 2023, with a target completion date before 2026[7]. - Sands China Ltd. continues to focus on reinvesting in its property portfolio to maintain high-quality offerings and competitiveness in the market[6]. - The company has committed to invest at least MOP 30,240,000,000 (approximately $3,750,000,000) in non-gaming projects in Macau by December 2032[41]. - The company successfully extended the maturity of its 2018 SCL credit facility from July 31, 2023, to July 31, 2025[8]. Expenses and Costs - Operating expenses rose by 65.3% to $2.46 billion from $1.49 billion, attributed to increased business volume across all categories[25]. - Casino expenses increased by 136.8% to $1.42 billion from $600 million, mainly due to higher gaming tax from increased casino revenue[26]. - General and administrative expenses were $301,000,000, an increase of 9.5% from $275,000,000 in the previous year, mainly due to higher marketing, utility, and wage expenses[27]. - The company incurred financing costs of $287 million for the six months ended June 30, 2023, compared to a loss of $189 million in the same period of 2022[97]. Governance and Compliance - The company has maintained compliance with corporate governance codes throughout the reporting period[52]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards[61]. - The company has five board committees: Audit Committee, Remuneration Committee, Nomination Committee, Capital Expenditure Committee, and Environmental, Social and Governance Committee[59]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[87]. - The company is investing $500 million in technology development to enhance user experience and operational efficiency[132]. - Market expansion plans include entering two new regions by Q4 2023, aiming for a 5% market share in those areas[132]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $1 billion allocated for potential deals[132]. Environmental and Social Responsibility - The company aims to enhance its environmental, social, and governance (ESG) initiatives, with a commitment to reduce carbon emissions by 25% by 2025[132]. - The company plans to enhance its environmental, social, and governance (ESG) initiatives, allocating $50 million towards sustainability projects in 2023[139].

Financial Performance - For the six months ended June 30, 2023, the adjusted property EBITDA was $939 million, compared to a loss of $120 million for the same period in 2022, indicating a significant recovery[2]. - The total net revenue for the six months ended June 30, 2023, was $2.9 billion, an increase of 216.4% from $915 million in the same period of 2022[4]. - The company's profit for the six months ended June 30, 2023, was $175 million, a turnaround from a loss of $760 million in the same period of 2022[2]. - The net revenue from the gaming segment was $2.16 billion, up 280.5% from $568 million in the previous year[5]. - The total comprehensive income for the period was $171 million, a significant recovery from a loss of $762 million in the previous year[40]. - The company reported a net profit attributable to equity holders of $175 million for the six months ended June 30, 2023, compared to a loss of $760 million in the same period of 2022[50]. - The company reported a basic and diluted earnings per share of 2.16 cents for the period, a recovery from a loss of 9.39 cents per share in the previous year[39]. Visitor and Revenue Growth - The total number of visitors to Macau increased by approximately 141.0% compared to the same period in 2022, contributing to improved business performance[3]. - The company anticipates continued improvement in visitor numbers and revenue as travel restrictions have been lifted, although future impacts remain uncertain[3]. - The Venetian Macao generated $1.211 billion in net revenue, up from $377 million in the prior year, reflecting a growth of approximately 221%[48]. - The Londoner Macao reported net revenue of $685 million, an increase of 242% compared to $200 million in the same period last year[48]. - The Parisian Macao's net revenue was $413 million, up from $116 million, marking a growth of approximately 256%[48]. Operational Metrics - Hotel revenue reached $338 million, a 244.9% increase from $98 million in the same period of 2022, driven by higher occupancy rates and revenue per available room[8]. - The occupancy rate for The Venetian Macao improved to 90.4%, up 50.5 points from 39.9%[9]. - The average daily room rate (ADR) for The Venetian Macao increased by 42.5% to $208 from $146[9]. - Food and beverage revenue surged by 181.1% to $104 million from $37 million in the previous year[14]. - Total shopping center revenue increased by 16.1% to $224 million from $193 million year-over-year[11]. Financial Position and Liquidity - The company reported a strong balance sheet with cash and cash equivalents totaling $1.23 billion and available borrowings of $1.74 billion as of June 30, 2023[3]. - Cash and cash equivalents totaled $1.23 billion as of June 30, 2023, primarily held in HKD, USD, and MOP[20]. - Cash used in investing activities for the six months ended June 30, 2023, was $51 million, primarily due to capital expenditures of $79 million[24]. - The company has a strong balance sheet with total cash and cash equivalents of $1,230 million and available borrowings of $1,740 million as of June 30, 2023[45]. - The company’s total current borrowings decreased to $14 million as of June 30, 2023, from $1,974 million as of December 31, 2022, reflecting a significant reduction[69]. Debt and Financing - The company successfully extended the maturity of its 2018 SCL credit facility from July 31, 2023, to July 31, 2025, enhancing financial flexibility[3]. - Net financing costs for the six months ended June 30, 2023, were $287 million, up from $189 million in the same period in 2022, representing a 51.9% increase[18]. - The weighted average interest rate for the six months ended June 30, 2023, was approximately 6.0%, up from 4.5% in the same period in 2022[18]. - The company has a borrowing capacity of $1,740 million under the 2018 SCL credit facility, which includes $1,570 million in HKD and $166 million in USD[72]. - The non-current portion of financial liabilities related to the gaming concession is recorded under "Trade payables and other payables - non-current" in the consolidated balance sheet[60]. Capital Expenditures and Investments - Total capital expenditure for the six months ended June 30, 2023, was $79 million, a decrease of 49.4% compared to $156 million in the same period of 2022[26]. - The company has committed to invest at least $3.75 billion in Macau by December 2032, including $3.44 billion in non-gaming projects[27]. - The company continues to support ongoing major construction projects and fulfill contractual obligations[45]. Compliance and Governance - The audit committee reviewed the accounting policies and interim financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[38]. - The company believes it has complied with all covenants of the 2018 SCL credit facility as of June 30, 2023[21]. - The board of directors did not recommend an interim dividend for the six months ended June 30, 2023[28]. Risks and Challenges - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2022[46]. - The company has applied for an extension of tax exemptions for its gaming operations, which may affect future tax liabilities[56].

Financial Performance - The total net revenue for the year ended December 31, 2022, was $1,610,000,000, a decrease of 44.2% compared to $2,870,000,000 for the year ended December 31, 2021[6]. - The loss for the year ended December 31, 2022, was $1,580,000,000, compared to a loss of $1,050,000,000 for the year ended December 31, 2021[6]. - The adjusted property EBITDA loss for the year ended December 31, 2022, was $323,000,000, compared to an adjusted property EBITDA of $341,000,000 for the year ended December 31, 2021[6]. - The casino segment generated net revenue of $947,000,000, down 52.3% from $1,990,000,000 in the previous year, primarily due to a decrease in visitor numbers[87]. - The total revenue from hotel operations was $184,000,000, a decline of 33.3% from $276,000,000, attributed to lower occupancy rates and revenue per available room[90]. - Shopping center revenue decreased to $354,000,000, down 25.2% from $473,000,000, mainly due to a reduction in turnover rent and base rent[93]. - The total operating expenses decreased to $2.77 billion, down 18.9% from $3.41 billion[97]. - The company reported a net loss of $1.58 billion for the year ended December 31, 2022, compared to a net loss of $1.05 billion for the year ended December 31, 2021[104]. Visitor Statistics - The company attracted a total of 31,000,000 visitors across its properties in 2022, averaging approximately 85,000 visitors per day[9]. - In 2022, the total number of visitors to Macau was approximately 6,000,000, a decrease of about 86% compared to 2019 and a decline of approximately 26% from 2021[35]. - The total number of visitors to the Venetian Macao in 2022 was approximately 9,700,000, down from 12,800,000 in 2021 and 36,000,000 in 2019[69]. - The Londoner Macao has a total of 8,300,000 visitors in 2022, compared to 9,800,000 in 2021 and 19,200,000 in 2019[71]. - Macau Parisian had a total visitor count of approximately 3.3 million in 2022, down from 5.5 million in 2021 and 13 million in 2019[72]. - Macau Palace recorded a total visitor count of approximately 8.6 million in 2022, compared to 12 million in 2021 and 24.3 million in 2019[73]. - Macau Sands had a total visitor count of approximately 900,000 in 2022, a decrease from 1.5 million in 2021 and 5.7 million in 2019[74]. Market Position and Strategy - The company achieved the highest market share in room sales on major Chinese travel platforms, including Ctrip, Meituan, and Fliggy, for its properties in Macau[7]. - The company continues to focus on strategic partnerships and collaborations to enhance its market position and operational efficiency[7]. - The company aims to enhance its market share in Macau's gaming sector by focusing on high-margin mass gaming and providing luxury facilities and high-level services to VIP and premium customers[43]. - The company is focused on expanding its market presence and enhancing operational efficiency[31]. - The company aims to enhance its position as a leading developer and operator in Macau by expanding its Cotai integrated resorts and diversifying its service offerings[42]. Investments and Developments - The company has invested over $15,000,000,000 to support the diversification of Macau's economy and enhance its position as a leading leisure and business tourism destination in Asia[36]. - Recent investments include the addition of approximately 1,250 luxury suites and 2,700,000 square feet of new facilities, enhancing the overall accommodation and entertainment options in Macau[37]. - The company plans to develop a new 50,000 square meter garden-themed attraction, including a landmark greenhouse, to enhance its tourism offerings[59]. - The company aims to expand its conference and exhibition facilities by developing a new approximately 18,000 square meter venue to host more large-scale international events[58]. Awards and Recognition - The company was included in the Dow Jones Sustainability World Index for the first time in 2022 and has been recognized for its outstanding ESG practices[8]. - Sands China received multiple awards in 2022, including the Asia Pacific Tourism Association Gold Award and the 2022 Human Resources Management Excellence Award[14]. - The Venetian Macao was recognized as the Best Hotel Suite in Macao and received the M&C Asia Stella Award for Best Conference Hotel in Macao in 2022[14]. - The Londoner Macao achieved a five-star rating from Forbes Travel Guide in 2023 and was awarded the 2022 China’s Best Luxury Hotel by the 19th Golden Pillow Hotel Awards[16]. - The Four Seasons Hotel Macao received a five-star rating from Forbes Travel Guide in 2023 and was listed among China’s Top 10 Hotels by Condé Nast Traveler in 2022[19]. Corporate Governance - The company has a strong governance structure with various committees, including the Remuneration Committee and the Environmental, Social, and Governance Committee, to ensure compliance and strategic oversight[24]. - The board of directors consists of eight members, including three executive directors and five non-executive directors, with four being independent non-executive directors[163]. - The independent non-executive directors have specific responsibilities to safeguard minority shareholders' interests, given the majority ownership by LVS[166]. - The company has established a compliance committee to oversee adherence to applicable laws and regulations, including anti-money laundering policies[151]. - The board conducts an annual self-assessment to determine its effectiveness and that of its committees[195]. Legal and Regulatory Compliance - The company is involved in a legal dispute with Asian American Entertainment Corporation, claiming damages of MOP 96,450,000,000 (approximately USD 12,010,000,000) for alleged lost profits from 2004 to 2018[54]. - The company is subject to regulatory oversight by the Macau government, requiring bi-monthly progress reports on development projects[63]. - The company must comply with minimum insurance requirements for certain debt instruments and agreements, and failure to do so could lead to defaults[133]. - The company is subject to extensive regulations and licensing requirements across multiple jurisdictions, which could impact its operations and financial performance if licenses are not renewed or obtained[119]. Sustainability and Community Engagement - The company has committed to reducing Scope 1 and Scope 2 greenhouse gas emissions by 17.5% compared to the 2018 baseline by 2025[148]. - The company has planted 1,000 mangrove seedlings along the Macau coast in collaboration with the University of Saint Joseph as part of its water resource management initiatives[148]. - The company provided over 7,500,000 hours of community service since 2020 to support pandemic prevention efforts[153]. - The company aims to invest 110,000 hours in volunteer services for local community contributions by 2025[149]. Management and Leadership - The company’s leadership includes Robert Glen Goldstein as Chairman and CEO, with a board comprising eight members, four of whom are independent non-executive directors[21][22]. - The Chief Financial Officer, Dave Sun, has been with the company since 2007 and has extensive experience in financial management[33]. - The company has appointed Wilfred Wang as President and Executive Director, who has extensive experience in property development and has held various significant positions in the Hong Kong government and private sector[24]. - The company relies heavily on the continued service of its senior management team, and losing key personnel could significantly adversely affect its business[131].

Financial Performance - For the six months ended June 30, 2022, the adjusted property EBITDA loss was $120 million (HKD 942 million), compared to an adjusted property EBITDA of $234 million (HKD 1,820 million) for the same period in 2021[8]. - The total net revenue for the first half of 2022 was $915 million (HKD 7,180 million), a decrease of 43.5% from $1,620 million (HKD 12,580 million) in the first half of 2021[8]. - The loss for the first half of 2022 was $760 million (HKD 5,960 million), compared to a loss of $381 million (HKD 2,960 million) in the first half of 2021[8]. - Total gaming revenue in Macau for the six months ended June 30, 2022, decreased by approximately 46.4% and 82.4% compared to the same periods in 2021 and 2019, respectively[15]. - The company reported a total comprehensive loss of $762 million for the six months ended June 30, 2022, compared to a comprehensive loss of $383 million in the same period in 2021[111]. - The basic and diluted loss per share for the period was $(9.39) compared to $(4.71) in the previous year, indicating a significant increase in losses per share[110]. - The company reported a loss attributable to equity holders of $(760) million for the six months ended June 30, 2022, compared to a loss of $(381) million in the same period of 2021[138]. Visitor and Gaming Operations - The total number of visitors from mainland China to Macau decreased by approximately 12.2% and 78.1% compared to the same periods in 2021 and 2019, respectively[15]. - The company’s gaming operations remained open, but visitor numbers were adversely affected by travel restrictions due to multiple COVID-19 outbreaks in the region[13]. - The company anticipates a recovery in visitor numbers to Macau as travel restrictions are lifted, which is expected to drive future growth[24]. - The company’s properties experienced a significant decline in visitor numbers due to travel restrictions related to COVID-19, impacting overall business performance[120]. Strategic Developments - The business strategy focuses on developing the Cotai properties and enhancing the integrated resort business model to become Asia's premier gaming, leisure, exhibition, and conference destination[10]. - The company is preparing to submit a bid for new gaming licenses, with the deadline for submissions set for September 14, 2022[20]. - The amended gaming law reduces the duration of future gaming licenses to ten years and increases the minimum capital requirement to MOP 5 billion (approximately $619 million)[19]. - The company has committed to returning approximately 136,000 square meters of gaming and related areas to the Macau government upon the expiration of its current license[18]. Financial Position and Cash Flow - As of June 30, 2022, the company had cash and cash equivalents totaling $766 million, excluding restricted cash[16]. - The company received a loan of $1 billion from its parent company LVS on July 11, 2022, to support ongoing operations[16]. - The company is currently undergoing a renewal process for its debt obligations, which may significantly impact its financial condition and cash flow[22]. - The company has extended its gaming license until December 31, 2022, following approval from the Macau government[17]. - The company has taken several cost-cutting measures and capital expenditure reductions to manage cash flow during the ongoing COVID-19 pandemic[16]. Operational Metrics - The total number of full-time team members was 25,110, with a gender ratio of 48% male and 52% female[72]. - The company incurred a net cash outflow of $149 million from investing activities, mainly due to capital expenditures of $156 million, including $118 million for The Londoner Macao and $31 million for The Venetian Macao[61]. - The company has not declared any interim dividends for the six months ended June 30, 2022, nor for the year ended December 31, 2021[66]. - The company’s total liabilities as of June 30, 2022, were $9,781 million, reflecting a decrease from $10,094 million as of December 31, 2021[143]. Corporate Governance and Compliance - The company has established a corporate governance framework to ensure effective management and compliance with stakeholder interests[76]. - The chairman and CEO roles are held by Robert Glen Goldstein since January 2021, aimed at enhancing strategic focus[77]. - The company confirmed compliance with the securities trading standards throughout the reporting period[79]. - The board of directors and committees remained unchanged as of June 30, 2022[82]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental sustainability through its global strategy aimed at reducing ecological impact[74]. - The company aims to enhance its environmental, social, and governance (ESG) initiatives, committing to a 50% reduction in carbon emissions by 2025[178]. Market Risks and Challenges - The company continues to face uncertainties regarding the resumption of normal operations due to travel restrictions and the impact of COVID-19[15]. - The company faces potential negative impacts on its financial condition and operations if the gaming license is not renewed or if there are changes in gaming laws[131]. - The ongoing COVID-19 pandemic continues to affect the Macau gaming industry, with increased cases leading to tighter travel restrictions[25].