Moody’s forecasts 20-25% EBITDA growth for Asia Pacific gaming sector

Analysts at Moody’s predict that Macau’s recovery will fuel growth for the Asia Pacific gaming sector.

Macau.- Moody’s Investors Service predicts that the gaming sector in the Asia Pacific region will benefit from a sharp rise in consumer spending on entertainment following years of Covid-19 restrictions. The credit rating provider has predicted that Macau’s recovery will drive a 20-25 per cent jump in earnings before interest, taxation, depreciation and amortisation (EBITDA) over the next 12-18 months. 

Moody’s stated that the depressed levels seen since 2020 are expected to rebound due to the anticipated recovery of Macau and the continued recovery of other Southeast Asian locations. China, which has previously slowed down the gaming industry’s recovery, is now expected to boost the hospitality industry’s recovery.

Despite these positive predictions, Moody’s has cautioned that the recovery of general consumer spending on leisure, including casinos, is slowing due to an increasingly difficult economic environment, with high inflation and rising interest rates. However, it predicts the global gaming sector will perform above pre-pandemic levels for the first time in 2024.

It expects the gaming market in the United States to experience a moderation in growth after achieving record gaming revenue in the last two years, but says growth in the Asia Pacific region is likely to offset the slowdown in the US.

See also: Macau daily GGR to rise over Labour Day holiday, analysts say