Sands China Sees Boost from Re-Investment Strategy as Londoner Drives Q2 Gains

Sands China’s strategic increase in re-investment is beginning to yield measurable results, with the Londoner property playing a key role in lifting the group’s performance in the second quarter of 2025, according to analysts from Jefferies. The company’s latest financial results for 2Q25 show adjusted EBITDA reaching $566 million, marking a 1 percent rise year-on-year and a 6 percent increase from the previous quarter.

In their investment memo, analysts Anne Ling and Jingjue Pei described the group’s performance as “slightly higher than estimates” in terms of adjusted EBITDA, while noting that overall sales aligned with expectations. They pointed to improved margins at the Londoner as a primary driver of the stronger-than-anticipated EBITDA. In Q2, the property’s margin rose to 32 percent, up from 29 percent in the first quarter of 2025.

This margin improvement was directly linked to the full reopening of all 2,405 rooms at the Londoner ahead of the May holiday period. The operational expansion not only bolstered the property’s performance but also provided evidence of the effectiveness of what the company calls a “step-up in re-investment” strategy.

For the quarter, Sands China reported net revenue of $1.8 billion, a 2 percent year-on-year increase and a 5 percent rise from the previous quarter. Gross gaming revenue remained flat on a yearly basis but improved 7 percent from Q1 to reach $1.715 billion. The company also benefited from favorable luck during the quarter, which added $7 million to adjusted EBITDA.

Sands China’s parent company, Las Vegas Sands, noted that it has “stepped up re-investment since April” and has witnessed positive momentum beginning in May. In particular, the company highlighted sequential growth in mass gross gaming revenue market share. Looking ahead, management said it expects the environment to remain competitive and emphasized its intention to “continue to adjust to market conditions.”

The company reported an 8 percent sequential improvement in mass gross gaming revenue market share during the second quarter and plans to build on this momentum in upcoming quarters in an effort to further recover market share.

As part of its short-term objectives, Sands China Limited has set a target adjusted EBITDA run rate of $2.7 billion. The breakdown of this goal includes $1 billion each from the Londoner and Venetian properties, $300 million apiece from Parisian and Four Seasons, and $100 million from Sands Macau.

By fLEXI tEAM