Macao's casino operators are facing a tough start to the latter half of the year, with Sands China revealing disappointing financial results for the second quarter. Despite this, the stock market seems largely unfazed, as the company's share price climbed to nearly HKD 14 ($1.80) by the end of last week.
Sands China manages multiple integrated casino resorts in the region. On July 23, the company reported a slight year-on-year decline of 0.8% in total net revenues, reaching $1.78 billion. Initially, share prices dipped but then swiftly rebounded, settling above HKD 14 and maintaining this position throughout the week, closing at their highest in about a month. Over the past month, Sands China's share prices have risen by more than 8%.
Amidst the less-than-encouraging financial report, there were some positive developments. The Londoner Macao, the company's flagship casino, saw revenues increase by 9%, reaching $548 million, while the Parisian experienced a more than 13% rise in gaming revenues. However, earnings from both venues decreased.
Further financial statistics revealed a concerning trend, with net income plummeting by 50% to $107 million, as reported by the Macao-based newspaper, Macau Shimbun. The adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) fell significantly from $566 million to $430 million compared to the previous year. For the first half of 2026, earnings were down by more than 3%.
Gaming revenues at the Venetian Macao dropped nearly 14%, and other Sands China properties performed slightly better, experiencing single-digit percentage declines in gaming revenue at the Plaza.
Patrick Dumont, Chairman and CEO of the Las Vegas Sands Group, noted that betting volumes across all gaming segments had increased year-on-year, owing to ongoing investments in service and hospitality in Macao. Yet, he pointed out that an "unusually low hold rate in rolling play" had adversely affected quarterly results.
In contrast, analysts have reported a decline in VIP spending across many Macao casinos. According to the Macao gaming regulator, VIP room receipts have dropped nearly 3% from last year's figures. The District Inspection and Coordination of Gaming also indicated that second-quarter gross gaming revenues fell slightly by 0.1% year-on-year, totaling nearly $7.6 billion. While some blame the global spotlight on the World Cup, other issues are also contributing to the challenges faced by the casinos, such as surges in mosquito-borne illnesses, typhoons, and proxy betting-related arrests.
Despite the downturn, the region's tax revenues from casinos appear to be thriving, with reports showing a 13% increase in casino tax revenues in the special administrative region earlier this month.
