Sands China Ltd has officially reinstated dividend payments for the first time in five years, announcing a final dividend of HKD 0.25 (USD 0.032) per share for the financial year ending December 31, 2024. The dividend is scheduled to be paid on June 20, 2025, to shareholders registered by May 30.

This announcement was widely anticipated by analysts and investors. Based on the company’s outstanding shares as of January 31, 2025, the total dividend payout is estimated to be approximately HKD 2.02 billion (USD 260 million). With this decision, Sands China follows in the footsteps of other Macau-based gaming operators, including Galaxy Entertainment Group, Wynn Macau Ltd, and MGM China, all of whom have resumed dividend payments post-pandemic.

Analyst Perspectives on Sands China’s Dividend Strategy

JP Morgan analysts cited by Macau Business noted that the declared dividend represents a 25% payout ratio based on full-year 2024 earnings, equating to a 1.5% yield. However, they cautioned against evaluating the dividend strictly from this perspective, explaining that Sands China is more likely to structure its dividend payments on a calendar-year basis rather than tying them directly to fiscal-year performance.

The research note suggested that this initial dividend may be part of a broader plan, with a similar payout expected in the latter half of 2025. If Sands China maintains this approach, it would result in a full-year dividend per share of HKD 0.50, translating to a 2.9% yield. However, analysts pointed out that this figure, while notable, is lower than the 5.2% yield projected for MGM China and the 3.6% yield estimated for Galaxy Entertainment Group.

Additionally, JP Morgan analysts speculated that Sands China may be focusing on repaying a USD 1 billion shareholder loan in 2025, which could limit its ability to offer larger dividend payouts in the short term. They projected that if financial conditions allow, the company might significantly increase dividends from 2026 onward, potentially reaching HKD 1.50 per share annually.

Financial Performance and Market Recovery

The dividend declaration was made alongside Sands China’s full-year 2024 financial results, which highlighted strong business performance. The company reported total net revenues of USD 7.08 billion, marking an 8.4% increase year-on-year. Adjusted property EBITDA also grew by 4.7%, reaching USD 2.33 billion. Net profit surged by 51.0% to USD 1.05 billion, up from USD 692 million the previous year.

However, the fourth quarter of 2024 showed a slight decline in performance. Sands China reported a 5.0% year-on-year decrease in net revenues for the quarter, amounting to USD 1.77 billion. The company’s net income for the quarter stood at USD 237 million, compared to USD 288 million in the same period of 2023. Adjusted property EBITDA for Q4 2024 also fell to USD 571 million from USD 654 million a year earlier.

Before the pandemic, Sands China maintained a consistent dividend payout, with annual dividends of HKD 1.99 per share from 2014 to 2019. However, in 2020, the company suspended dividends due to the financial impact of COVID-19, and in 2023, it extended its dividend-restriction period until January 1, 2025, as part of an amended facility agreement valued at approximately USD 2.49 billion.

Future Growth and Investment in Macau

Sands China continues to invest in Macau’s tourism and gaming sector. In a statement accompanying the announcement, Sands China’s Chairman Robert Goldstein emphasized the company’s long-term commitment to the region, highlighting the USD 1.2 billion renovation and rebranding of the former Sheraton Grand Macao into Londoner Grand. He noted that Sands China “made substantial progress on completing the later phases of The Londoner Macao throughout 2024” and confirmed that “the Londoner capital investment program will be substantially completed in the second quarter of 2025.”

Goldstein also emphasized the company’s broader strategy of leveraging its integrated resort model to enhance Macau’s tourism appeal. He highlighted the premium hospitality offerings at The Londoner Macao, calling them “the finest and most luxurious accommodation of any integrated resort we have ever developed.” He added that the resort’s attractions, retail, and entertainment options are expected to transform Macau’s Cotai Strip and contribute to the diversification of Macau’s economy.

Sands China operates five major properties in Macau: The Venetian Macao, The Londoner Macao, The Parisian Macao, The Plaza Macao & Four Seasons, and Sands Macao. With continued investment and the completion of its latest development projects, the company’s financial strategy and potential dividend growth will be closely monitored by investors in the coming years.