Analysts expect Macau casinos EBITDA to drop 23% for Q1

Macau casinos are slowly recovering from the Covid-19 pandemic.
Macau casinos are slowly recovering from the Covid-19 pandemic.

According to Morgan Stanley, Macau casinos will report an EBITDA of US$181m, down 23 per cent from the previous quarter despite an increase in gross gaming revenue.

Macau.- Morgan Stanley predicts that Macau’s casinos’ corporate EBITDA for the first quarter will be US$181m, a drop of 23 per cent from the previous quarter.

Results will be lower than expected due to an uneven recovery and higher operating expenses. However, gross gaming revenue (GGR) will rise to US$3bn, an 8 per cent increase, thanks to the mass segment.

VIP gaming operations are expected to decline by 3 per cent quarter-on-quarter.

See also: Macau GGR up 13.6% month-on-month in March.

Of the six casino operators, Melco Resorts is expected to see the best improvement in property EBITDA, with a 15 per cent rise to nearly US$43m.

Sands China will see an 8 per cent rise to US$51m and Wynn Macau will record a 2 per cent improvement to US$40m.

SJM Holdings it is expected to see EBITDA results of US$28.6m in property lossesMGM China will face a 69 per cent drop quarter-on-quarter to HK$115m, and Galaxy will be down 18 per cent.

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Covid-19 Macau casinos