Sands China shows solid growth, Londoner key driver: CreditSights
Sands China Ltd has posted steady growth in the second quarter of 2025, with analysts from CreditSights maintaining a “Market perform” recommendation on its US dollar bonds. The report signals stable investor sentiment around the Macau-based casino operator, amid increasing confidence in its revamped flagship property, The Londoner.
The company’s total net revenues increased by two percent year-over-year to approximately $1.8 billion (€1.67 billion), with gaming operations accounting for 77 percent of the total. Adjusted property EBITDA for the quarter also showed a modest 1 percent increase to $566 million (approx. €525 million), driven mainly by stronger performance from The Londoner.
Londoner powers profit at Sands China
The Londoner alone generated $205 million (approx. €190 million) in EBITDA, representing 36 percent of the quarter’s total. Management is aiming for the property to deliver $1 billion (approx. €928 million) in annualised EBITDA, with expectations of further improvement in the second half of 2025 as operations ramp up following its grand renovation.
While EBITDA margins could face short-term pressure due to what CreditSights termed an “aggressive” customer reinvestment programme, Sands China remains confident in maintaining positive free cash flow. The reinvestment efforts, launched in April, are aimed at attracting higher-value patrons through offers and loyalty benefits. These initiatives have coincided with a 23 percent increase in VIP gaming revenue and a 4 percent rise in mass market revenues across Macau in the second quarter.
CreditSights also stated that with less money required for new projects, Sands China should be able to continue generating additional cash. The company spent approximately $138 million (€128 million) in the second quarter and anticipates spending around $650 million (€603 million) for the full year. From 2026, this yearly spending is expected to drop to about $325 million (€301 million).
Sands China’s debt levels have stayed mostly the same. By 30 June 2025, total debt stood at $6.9 billion (around €6.4 billion). The company’s leverage ratios were steady, with gross leverage at 3.1 times and net leverage at 2.6 times. There are no US dollar bonds due for repayment in the second half of 2025.
The next major bond maturity, worth approximately $800 million (€743 million), is scheduled for January 2026. In June, Sands China also paid off $1.6 billion (€1.49 billion) in bonds early, using funds from a HK$12.95 billion (€1.49 billion) loan.
Summer boosts occupancy rates
Hotel performance improved year-on-year, with occupancy at Sands Macao reaching 99.4 percent and The Venetian Macao at 96.6 percent. The company leads the market in hotel capacity, holding a 27 percent share as of June 2025.
Room revenues rose 12 percent, comprising 12 percent of the company’s total net revenue, while retail mall income increased 8 percent due to higher turnover rent from stronger tenant sales.
Among Macau’s gaming operators, CreditSights rates Sands China bonds as “Market perform”, in contrast to MGM China’s “Outperform” and Melco Resorts and Studio City’s “Underperform”. The rating reflects a stable outlook, with earnings growth anticipated to continue through the remainder of 2025 and into 2026.
