Sands China Shares Drop Over 4% in Morning Session as Venetian Renovation Plan Commences, Potentially Weighing on Margins Short-Term

Stock News04-24

Sands China Ltd (01928) saw its shares decline by over 4% during the morning trading session. At the time of writing, the stock was down 3.03%, trading at HK$16.32, with a turnover of HK$218 million. On the news front, Sands China announced that, according to US Generally Accepted Accounting Principles, its total net revenue for the first quarter of 2026 increased by 23.6% year-on-year to $2.1 billion. Net income rose by 45.5% compared to the same period last year, reaching $294 million. Adjusted property EBITDA stood at $633 million, marking an increase of 18.32% year-on-year. Haitong International pointed out that overall, Sands China's net revenue and adjusted property EBITDA for the first quarter of 2026 were in line with market expectations. The renovation project for The Venetian has officially commenced, with the first batch of guest rooms expected to be operational by the third quarter of 2026. The entire refurbishment plan is scheduled for completion between 2027 and 2028. In the short term, the renovation investment is anticipated to increase operating costs and exert some pressure on profit margins. Over the medium to long term, however, it is expected to enhance the competitiveness of the premium mass market segment. The company's medium-term target is to achieve a quarterly adjusted EBITDA of $700 million.

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