Macau Casinos Seen Posting Combined $823 Million Quarterly Loss

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Macau casino operators are expected to post a combined loss of more than $800 million in earnings before interest, tax, depreciation and amortization for the quarter ended Sept. 30, according to a Bloomberg survey of analyst estimates.

  • Each of the six operators, which start reporting earnings in the coming weeks, will likely show negative quarterly Ebitda, according to the survey of seven brokerages. SJM Holdings Ltd. and MGM China Holdings Ltd. are expected to report the biggest percentage changes from a year earlier.
  • Macau’s casino industry has seen gaming revenue plunge by no less than 90% for six straight months as the pandemic forced countries to shut borders.
  • A slow recovery is under way after China gradually lifted travel restrictions over the past quarter and formed a travel bubble with the world’s largest gambling hub. Mainland Chinese visitor arrivals during the Golden Week holiday were still 84% lower compared with a year earlier.
OperatorCurrency3Q 2020 median3Q 2019 actualYoY % change3Q 2020 high3Q 2020 low
Sands ChinaUS$m(242)755-132%(222)(253)
Wynn MacauUS$m(132)301-144%(110)(153)
Melco ResortsUS$m(122)418-129%(106)(139)
MGM ChinaHK$m(781)1,549-150%(740)(847)
Galaxy EntertainmentHK$m(1,092)4,112-127%(1,057)(1,143)
SJM HoldingsHK$m(679)950-171%(524)(738)
Sector TotalUS$m(823)2,322-135%N/AN/A

* Data of Sands, Wynn, Melco and MGM are property Ebitda, while those of Galaxy and SJM are company Ebitda.

©2020 Bloomberg L.P.

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