Morgan Stanley expects Sands China to announce first dividend since 2020
It predicts that the dividend per share could grow back to pre-pandemic levels.
Macau.- Morgan Stanley has said that Sands China could announce its first dividend since 2020 on Friday (February 21). It also predicts that the dividend per share could grow back to the pre-pandemic level of HK$2, resulting in a yield of over 12 per cent.
The bank said the casino operator did not gain market share in the mass segment in the fourth quarter, despite the opening of the Londoner Casino and the Venetian Arena. However, analysts are optimistic as over 2,000 new rooms and suites in the Londoner Grand become available in the first half of 2025.
The Londoner Grand Casino opened at the end of the third quarter after renovations to the gaming area at The Londoner Macao complex. Sands China plans to have all rooms ready by the May Golden Week holiday.
In the fourth quarter of 2024, Sands China posted net revenue of US$1.77bn, down 5 per cent year-on-year and flat in quarter-on-quarter terms. Net income was US$277m, down 3.9 per cent year-on-year. The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was down 2.7 per cent compared to the fourth quarter of 2023 at US$571m. This was attributed to a low hold on rolling play.
For the full year 2024, the casino operator posted net revenue of US$7.08bn, up 8.4 per cent in year-on-year terms. Net income was US$1.05bn, compared to US$696bn in 2023. Adjusted property EBITDA was US$2.33bn.
