Macau-based casino operator Sands China Ltd has announced its first dividend in five years. The Hong Kong-listed company declared a final dividend of HKD0.25 (US$0.032) per share for the financial year ending 31 December 2024. Shareholders on record as of May 30 will receive the dividend on 20 June.
Dividend expected to grow in 2025
Brokerage JP Morgan Securities (Asia Pacific) Ltd noted that this payout could be seen as a half-yearly dividend for 2025. Analysts DS Kim, Selina Li, and Mufan Shi predicted a similar dividend in the second half of the year, bringing the total to HKD0.50 per share for the full year.
The firm’s estimated dividend yield of 2.9 percent is lower than those of rivals MGM China Holdings Ltd (5.2 percent) and Galaxy Entertainment Group Ltd (3.6 percent). JP Morgan analysts described the dividend as “modest” and suggested that Sands China’s financial priorities may have influenced the decision.
Loan repayment may influence dividend strategy
JP Morgan analysts have suggested Sands China may be concentrating on redeeming a US$1-billion shareholder loan sometime later in 2025. Analysts believe Sands China will boost dividend payments considerably starting from 2026, to the extent of HKD1.5 per share annually.
Prior to the Covid-19 pandemic, Sands China maintained a steady dividend payout of HKD1.99 per share annually from 2014. The company suspended dividends in April 2020 due to the financial impact of the pandemic on the global economy.
Financial performance and Macau operations
Sands China reported a decline in its fourth-quarter 2024 financial results. Net revenues fell by 5.0 percent year-on-year to US$1.77 billion. The company’s net income for the quarter stood at US$237 million, down from US$288 million a year earlier. Adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) from its Macau operations were US$571 million, a decrease from US$654 million in the previous year.
The company operates several major casino resorts in Macau, including The Venetian Macao, The Parisian Macao, The Londoner Macao, and Sands Macao.
In May 2023, Sands China granted a dividend-restriction period under an amended US$2.49-billion facility deal. The restriction, originally scheduled to lapse earlier, was pushed to January 1, 2025. The deal restricted the company from paying dividends until the restriction period lapsed.
Meanwhile, Sands China’s parent company, Las Vegas Sands Corp, resumed its quarterly dividend programme in July 2023. The US-listed firm increased its quarterly dividend to US$0.25 per share for the 2025 calendar year.
