Sands China experiences a 13% decrease in profits during the second quarter
In the gaming industry, Sands China Ltd. (2282.HK) is set to experience moderate growth in net income, with some adjustments to profit forecasts for the period from 2025 to 2027.
The second quarter of 2025 saw a 2.5% year-on-year increase in net revenue for Sands China Ltd., reaching $1.79 billion. However, the company's adjusted property EBITDA for the same quarter was only up about 1% year-over-year, at approximately $566 million. This slight increase was supported by increased promotional efforts and additions to room inventory, driving mid-level gaming revenue growth of about 8%.
Despite this growth, reinvestment rates and operating expenses also rose, leading to a slight margin compression. Analysts have adjusted their earnings forecasts downward by 2%-3% based on the company's second-quarter 2025 performance and current operating trends, yet they maintain a positive outlook on the stock.
Gaming revenue at most of Sands China Ltd.'s integrated resorts in Macau declined during the second quarter. However, one exception was Londoner Macao, which saw a surge in revenue, with a 56% increase to $495 million from $315 million a year earlier.
Looking ahead, Sands China Ltd.'s Chairman and CEO, Robert Goldstein, has set ambitious financial targets. He aims for quarterly adjusted property EBITDA between $600 million and $650 million, and annual adjusted property EBITDA in a range of $2.6 billion to $2.7 billion, from 2025 to 2027.
The stock of Sands China Ltd. is currently up over 35% from its low over the last three months. On Thursday, the stock opened up 1.85% at HK$18.76.
Analysts expect steady, moderate growth rather than rapid expansion during this period, maintaining a "neutral" to "outperform" perspective from major banks.
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[Article Categories: Gaming, Sands China, Gambling, Casino, Social Media/Entertainment]
Sands China Ltd.'s focus on casino-games and casino-and-gambling offerings contributed to the 8% growth in mid-level gaming revenue during the second quarter of 2025. In line with the ambitions set by Sands China Ltd.'s Chairman and CEO, Robert Goldstein, analysts predict steady, moderate growth within the casino-games sector for the company's future financial projections from 2025 to 2027.
