Asian gaming companies’ EBITDA to drop 70%
Moody’s has a negative outlook for Asian gaming firms in 2020. Those with a strong domestic base are expected to recover sooner.
The ratings agency Moody’s has estimated that nine listed gaming operators in the Asia Pacific region will see a 70 per cent drop in EBITDA this year.
The nine companies are Genting Singapore; Genting Bhd; Las Vegas Sands, Melco Resorts & Entertainment; Wynn Resorts; MGM Resorts; Studio City Finance; Nagacorp and Crown Resorts.
International travell restrictions as well as social distancing measures in confined spaces will hurt the companies’ finances throughout 2020, with a modest recovery the following year, Moody’s said in a report.
However, the firm also said that most of the companies had sufficient liquidity to meet basic cash needs over the next 12 months.
The report added that some of the listed companies had begun projects or significant expansions which would continue amid the pandemic.
Moody’s predicts that gaming firms with stronger local customer bases, such as in Malaysia and Australia will recover sooner than those like Macau, Cambodia or Singapore that depend on tourism.