Virus May Shave Off 95% Profit of Macau Casinos in March Quarter
(Bloomberg) -- Macau casino operators are expected to show a 95% drop in their earnings before interest, tax, depreciation and amortization for the March quarter, according to a Bloomberg survey of analyst estimates.
- All six operators are seen posting year-on-year declines in quarterly EBITDA when they start reporting earnings in the coming weeks, according to the survey of nine brokerages.
- The plunge underscores the deep financial damage inflicted by the coronavirus pandemic and follows a 60% drop in gaming revenue in the first quarter after casinos in Macau were shut for 15 days in February to curb the deadly pathogen.
- While 80% of the gaming tables reopened by mid-March, China continued its freeze on individual and group visas and tourist arrivals fell 71% from the year-ago quarter.
- Macau will urge the Chinese government to resume tourist visas and increase the number of Chinese cities covered by the individual visitor scheme “at an appropriate time,” said Ho Iat Seng, the enclave’s chief executive during his annual policy address on Monday.
|Operator||Currency||1Q20 median||1Q19 actual||YoY||1Q20 high||1Q20 low|
* Data of Sands, Wynn, Melco and MGM are property EBITDA, while those of Galaxy and SJM are company EBITDA.
- Note: The Bloomberg Intelligence gauge of Macau casino shares dropped 35% in the March quarter compared with a 16% loss in the Hang Seng Index over the period
- Note: April 20, Macau Says No Plan to Legislate Gaming License Bidding This Year
- Note: March 20, Macau Halves 2020 Gaming Revenue Forecast on Coronavirus Hit
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