Sands China has resumed the payment of dividends for the first time in five years after its Board of Directors recommended payment of a final dividend of HK$0.25 for the year ended 31 December 2024.
The company revealed late Friday that, based on shares on issue as of 31 January 2025, the total amount of the dividend to be distributed is estimated at around HK$2.02 billion (US$260 million). It joins Galaxy Entertainment Group, Wynn Macau Ltd and MGM China as Macau concessionaires to have resumed the payment of dividends post-COVID.
In a note, JP Morgan analysts said the HK$0.25 dividend represents implies a 25% payout ratio on FY24 and a 1.5% yield but added, “We would NOT look at it this way since the company is likely to view its dividend cadence on a calendar year and absolute dollar basis (as opposed to fiscal/accounting earnings).
“Put differently, we’d treat this HK$0.25 per share as a half-yearly dividend for CY2025, which we think will be repeated in 2H25 to make full-year DPS of HK$0.50 for CY25. This would imply a 2.9% yield, which is not nothing but not needle-moving either.”
JP Morgan also outlined its expectation that Sands China may be planning to pay back a US$1 billion shareholder loan later this year, which would limited its ability to pay higher dividends for now.
“If we’re right about this, Sands should be able to ramp up the size of its dividend sharply from 2026E onward, up to about HK$1.50 per share per annum if they want,” the investment bank wrote.
Confirmation of dividend resumption formed part of Sands China’s FY24 results announcement, with the company reporting total net revenues of US$7.08 billion, up 8.4% year-on-year, and Adjusted Property EBITDA of US$2.33 billion, up 4.7%. Profit for the year reached US$1.05 billion, an increase of 51.0% from US$692 million a year earlier.
In a chairman’s statement, Sands China’s Chairman Robert Goldstein – also Chairman and CEO of parent Las Vegas Sands – pointed to the substantial investment the company has made in Macau over the past two decades, including its most recent US$1.2 billion refurbishment and rebranding of the former Sheraton Grand Macao into Londoner Grand.
“We will have substantially completed the Londoner capital investment program in the second quarter of 2025,” he said.
“The Londoner Macao features many outstanding tourism attractions as well as unique dining, retail and entertainment offerings. The new suite product at The Londoner Macao reflects our focus on creating unique hospitality experiences and is the finest and most luxurious accommodation of any integrated resort we have ever developed. We believe the tourism offerings of The Londoner Macao will be transformative for Macau and the Cotai Strip, further enhancing Macau’s tourism appeal.
“Our Sands China business strategy remains straightforward: continue the execution of our Cotai Strip development initiatives by leveraging our convention-based integrated resort business model and world-class amenities to contribute to Macau’s diversification. These efforts will drive Sands China’s market-leading revenue and cash flow generation as the recovery in travel and tourism spending in Macau progresses.”
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