According to a research report published by Morgan Stanley, Sands China's performance in the first quarter fell slightly below expectations. Property EBITDA fell 7% quarterly to US$610 million, reaching only 71% of the same period in 2019, 7% lower than the bank's forecast of US$658 million. The EBITDA for properties taking into account profit margin adjustments was US$641 million, and 4% lower than market expectations of US$665 million. Excluding the impact of retail business EBIT and profit margins, the EBITDA for the first quarter reached US$538 million, reaching 73% of the same period in 2019. The EBITDA profit margin was 30.8%, down 50 basis points from quarter to quarter.

According to Damo, Sands China's midmarket share in the first quarter fell 90 basis points from quarter to quarter, in line with expectations. Mid-term and slot machine revenue remained flat, reaching about 95% in the first quarter of 2019. I believe this was partly due to the renovation of Arena and Sheraton Hotels. It is estimated that more guest rooms will be completed and put back into use in the next two seasons.

Damo maintained its “in sync with the market” rating of Sands China, with earnings forecasts of $0.18, 0.24, and 0.28 per share from 2024 to 2026.