JP Morgan lowers estimate for Sands China property-level EBITDA
JP Morgan expects Sands China’s property-level EBITDA for 2025 to be 5 per cent lower than its previous estimate.
Macau.- Analysts at JP Morgan have predicted that Sands China’s operations could generate property-level earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately US$2.66bn in 2025. The figure would 5 per cent lower than analysts’ previous estimate of US$2.8bn.
Analysts Joseph Greff, Samuel Nielsen and Pritesh Patel expect Sands China to post net revenues of US$8.21bn this year, following an estimate of US$7.82bn for 2024. For full year 2024, JP Morgan estimates group-wide property EBITDA of US$2.33bn. It lowered expectations for fourth-quarter earnings from US$625m to US$578m based on an assumption of a gross gaming revenue (GGR) market share of circa 23 per cent, mainly due to the renovation of the Londoner Macao rooms.
See also: Macau shares gross gaming revenue results in 2024
Marina Bay Sands
Analysts said Marina Bay Sands is expected to post net revenue of US$4.13bn in 2024 and US$4.30bn in 2025, while the property-level EBITDA could be US$2.04bn in 2024 and US$2.17bn in 2025.
On January 10, Las Vegas Sands (LVS) announced it would pay US$1bn to Singaporean authorities after entering into an agreement with the Singapore Tourism Board (STB) to amend the expansion project for Marina Bay Sands. The company said it aims to increase the gaming area allocation. It needs to purchase 2,000 square meters (21,528 sq. feet) of approved gaming area and 10,000 square meters in support of the gaming area from the STB.
In October, LVS revealed plans to invest US$8bn in the development of the second phase of Marina Bay Sands, which will feature the development of the Marina Bay Sands Tower IV, with 570 rooms, and additional casino space. The fourth tower will feature a 15,000-seat entertainment arena. Development is slated to begin by June 2025 and to complete by January 2031.
