Sands China‘s increased re-investment strategy has delivered positive results, with the Londoner property contributing significantly to the group’s 2Q25 performance, according to investment analysts at Jefferies.
According to its 2Q25 financial results, the company recorded adjusted EBITDA of $566 million in the quarter, representing a 1 percent year-on-year increase and 6 percent quarter-on-quarter growth.
Analysts Anne Ling and Jingjue Pei noted in their investment memo that Sands China’s results were ‘slightly higher than estimates’ for adjusted EBITDA while sales remained in line with projections. The stronger-than-expected EBITDA performance was primarily driven by margin improvement at the Londoner property, which saw its margin increase to 32 percent compared to 29 percent in the 1st quarter of 2025.
The improvement at Londoner was attributed to the reopening of all 2,405 rooms before the May holiday period. This operational enhancement contributed to the property’s enhanced performance and demonstrated the effectiveness of the company’s ‘step-up in re-investment’ strategy.
Net revenue for Sands China increased 2 percent year-on-year and 5 percent quarter-on-quarter to $1.8 billion. Overall gross gaming revenue remained flat year-on-year but increased 7 percent quarter-on-quarter to $1.715 billion. The luck factor positively impacted EBITDA by $7 million during the quarter.
Parent company Las Vegas Sands indicated that it has ‘stepped up re-investment since April’ and has observed encouraging results since May, with mass gross gaming revenue market share growing sequentially. Management expects the market to remain competitive moving forward and will continue to adjust to market conditions.
The company reported sequential improvement in mass gross gaming revenue market share, up 8 percent for the quarter, with intentions to drive further improvement and recapture market share in coming quarters.
Management outlined short-term targets for Sands China Limited, aiming for an adjusted EBITDA run rate of $2.7 billion, with Londoner and Venetian each targeting $1 billion, Parisian and Four Seasons at $300 million each, and Sands Macau at $100 million.
