Sands China to focus on revenue improvement rather than margins as it looks to expand player base

CeditSights expects increase in promotional spend as Sands China looks to attract and retain higher-spending punters

Analytical group CreditSights says Sands China’s EBITDA margins will continue to trend lower in 2026 as the company prioritises revenues over its margins in a push to enhance its player investment strategy.

CreditSights said: “Looking ahead into 2Q26, we expect margins to continue trending marginally lower given the competitive landscape of the premium market that could warrant an increase in service-level investments/promotional offerings by Sands China to attract/retain higher-spending punters.”

“Nevertheless, its customer reinvestment program continued to bear fruit in improving its market share and the company’s service-level investments/customer-focused initiatives are expected to continue driving growths in both revenue and EBITDA,” the analysts wrote.

“We expect to see further improvements to the company’s debt metrics in 2Q26, mainly driven by the debt reduction from the recent HKD$2.4bn (US$307m) repayment of the outstanding balance of its revolving credit facility (due in 2029) in April.

“We estimate Sands China’s free cash flow to have remained positive in 1Q26 thanks to the lower capex (-55 per cent Year on Year) and better EBITDA, and we project free cash flow to remain in the green in 2026 given the tapering capex and higher expected EBITDA for FY26.”