Analysts at Morningstar have also lowered their predictions for Macau’s 2022 gross gaming revenue to 20 per cent of 2019 levels.
Macau.- As new Covid-19 cases continue to appear in Macau, analysts at Morningstar have predicted that Macau’s casino gross gaming revenue (GGR) will reach only 20 per cent of 2019 levels this year. They expect 2023 GGR could rebound to 60 per cent of pre-pandemic levels.
The US financial services firm had previously predicted that Macau’s GGR for this year could reach 40 per cent of 2019 levels. It’s lowered its forecast amid the latest outbreak of Covid-19 cases, which has led the government of Macau to shut casinos until July 18.
Analysts at Sanford Bernstein have predicted the average daily GGR in Macau for July will be down 85 per cent month-on-month. Analysts say revenue could also depend on the future of China’s zero-Covid. China remains the only country with a largely quarantine-free travel bubble with Macau.
Macau’s GGR for the first six months of 2022 combined stands at MOP26.27bn (US$3.26bn), down 46.4 per cent year-on-year. Analysts at JP Morgan Securities have already warned that Macau casino operators are likely to post negative earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter.