Sands China EBITDA plunges 24% to $430M, worst since pandemic

Sands China Ltd (1928.HK) reported 2Q Macau adjusted property EBITDA of $430 million, down 24% year on year and 32% quarter on quarter, missing consensus estimates of $505 million to $532 million — the worst performance since the pandemic.

"The FIFA World Cup, a softer seasonality and low hold in VIP and mass dragged the quarter," UBS analysts said in a note. The broker maintained its Buy rating on Sands China with a target price of HKD18.7.

Excluding the impact of the VIP hold rate, which came in at 1.4% in the quarter, adjusted EBITDA would have been $517 million, down 8% year on year and 16% sequentially. Mass gross gaming revenue fell about 5% quarter on quarter, premium mass GGR dropped about 11%, while VIP volume declined about 18%.

The results show the fragility of Macau's gaming recovery as external events disrupt demand. The World Cup drew visitors away from casino floors during a seasonally softer period, while unfavorable VIP hold amplified the earnings miss. Las Vegas Sands, Sands China's parent company, reported the Macau figures as part of its consolidated 2Q26 results.

The EBITDA miss signals that Macau operators face headwinds beyond the typical seasonal slowdown. Investors will watch third-quarter trends for signs of a rebound as the World Cup effect fades and seasonal demand returns.

This article is for informational purposes only and does not constitute investment advice.