Sands China reported a sharp fall in second-quarter profit despite recording stronger gaming volumes and market share gains, with the Macau casino operator saying the FIFA World Cup and unusually low VIP hold both weighed on its financial performance.
According to the company’s latest financial results, net income dropped 50 per cent year-on-year to just $107 million, while total net revenue slipped 0.8 per cent to $1.78 billion during the three months ended 30 June 2026.
Although revenue remained relatively stable, profitability came under pressure. Adjusted property EBITDA declined 24 per cent year-on-year to $430 million, compared with $566 million in the same period last year.
Low VIP roll impacts income
For the first six months of 2026, adjusted property EBITDA stood at $1.06 billion, down 3.45 per cent from the previous year. One of the biggest reasons behind the weaker earnings was what the company described as an “exceptionally low” VIP rolling hold of 1.35 per cent during the quarter.
VIP hold refers to the percentage of money casinos retain from high-roller gambling activity. Even when betting volumes remain strong, a lower hold means players win more than expected, reducing the casino’s gaming revenue.
Sands China said that if VIP hold returned to its normal expected level, second-quarter EBITDA would have been $87 million higher, bringing the total to around $517 million. Despite the weaker financial result, the company highlighted that underlying gaming activity continued to improve across its Macau properties.
Rolling chip volume increased 73 per cent year-on-year, while non-rolling drop rose 15 per cent. Slot machines and electronic table games also performed well, with handle climbing 30 per cent compared with the same period last year.
The company’s mass-market gross gaming revenue (GGR) also increased by eight per cent, outperforming Macau’s overall market growth of around four per cent during the quarter. Management said the business continued gaining market share even though overall profitability was affected by several temporary factors.
World Cup behind slowdown?
Another challenge came from the FIFA World Cup, which took place during the quarter. The company said visitation from high-value customers declined across both its Macau properties and Marina Bay Sands in Singapore, particularly during June.
Sands China said it saw fewer high-value customers visiting both its Macau properties and Marina Bay Sands in Singapore, especially in June. According to the company, business had started the quarter on a positive note, but momentum slowed as the tournament drew the attention of premium customers around the world.
The company also continued investing in its long-term strategy despite softer earnings. Operating expenses increased as Sands China spent more on sales, marketing and customer service to strengthen its premium guest experience. At the same time, major renovations at The Venetian Macao remain underway after work began in March 2026. The large-scale renovation of guest rooms and suites is expected to continue until early 2028.
Quarter-on-quarter, profitability also weakened. Based on first-half results, Sands China’s adjusted property EBITDA fell from approximately $633 million in the first quarter to $430 million in the second quarter, representing a decline of about 32 per cent.
While the latest results are likely to be a short-term impact of lower VIP hold and softer premium visitation, the steady increase in gaming volumes suggests customer demand remained resilient.
With renovation projects continuing and mass-market performance strengthening, the company appears to be focusing on expanding its long-term earnings base while navigating temporary pressures affecting the premium gaming segment.
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