Bernstein: casinos to breakeven in Q4

Analysts at Sandford C. Bernstein predict a recovery from September onwards for gaming operators with stronger premium segments.

Macau.- According to analysts at Sandford C. Bernstein, gaming operators with stronger premium segments are more likely to perform well in the earlier stage of local recovery, as the usual volume of mass customers will take time to recover.

Bernstein predicts that September will see the start of a recovery in revenues, and that fourth quarter results will be ‘be more than enough’ to achieve EBITDA breakeven.

The brokerage expects 2020 to conclude with a 71 per cent total year-on-year drop in gross gaming revenues, followed by a robust recovery in 2021.

The brokerage wrote: “While the rising tide lifts all boats, Melco and Wynn Macau should seize greater advantage early in the recovery as high-end VIP and premium mass customers with pent up demand and easier ability to travel should come back first. While increasing volume of visitors will the masses, the recovery in mass and lower-end premium will take more time.”

With the resumption of visas and the loosening of border restrictions, daily average tourist entries to Macau has slowly climbed to almost 10,000.