Macau casino operator Sands China Ltd will in likelihood announce on Friday (February 21) its first dividend in five years, suggested Morgan Stanley in a Sunday note. The banking institution expects the dividend to be revealed at the firm’s next board meeting.
“We think dividend per share of above HKD0.2 [US$0.026] would be a positive,” wrote the Morgan Stanley analysts.
“We expect dividend per share to grow back to HKD2 per share eventually – like pre-Covid –, resulting in more than 12 percent yield,” they added.
The institution observed that Sands China “didn’t deliver mass market share gain in the fourth quarter despite opening of Londoner Casino and [Venetian] Arena, but we are hopeful of them gaining share as new suites open up in first-half 2025 – more than 2,000 Londoner Grand rooms and suites”.
Londoner Grand Casino opened at the end of the third quarter, after refurbishment of the gaming space in that part of The Londoner Macao complex (pictured) .
Sands China expects to have the full room inventory of The Londoner Macao available by the May Golden Week holiday period, stated the company’s management on a conference call with investment analysts in late January.
Grant Chum, chief executive and president of Sands China, stated at the time: “We expect the continued ramp-up in rooms [at The Londoner Macao] to continue throughout the first quarter and the first part of the second quarter; the goal is to have the full 2,405 keys fully operational by May Golden Week and we believe we can achieve that.”
Fourth-quarter net revenues for Sands China decreased 5.0 percent year-on-year to US$1.77 billion. The firm’s net income stood at US$237 million in the three months to December 31, compared to US$288 million a year ago.
Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) from the Macau business were US$571 million in the final quarter of 2024, down from US$654 million a year earlier.
Las Vegas Sands Corp, the parent of Sands China, announced in late January that its annual dividend will increase to US$1 per share for the 2025 calendar year, with the next quarterly dividend of US$0.25 per share to be paid on February 19.
