Suncity VIP volume up to 20% of pre-Covid-19 levels
The recovery has been slower and more gradual than the group expected, according to Goldman Sachs analysts.
Macau.- Suncity Group has recovered up to 20 per cent of its pre-pandemic rolling chip volume in Macau, according to analysts at Goldman Sachs Asia.
Simon Cheung, Alpha Wang, and Carrie Jiang said a source close to the Hong Kong-listed gaming group had recognised that the pace of recovery was behind expectations and that the firm had closed select VIP rooms in Australia, South Korea and Macau.
Goldman Sachs Asia suggested that VIP gross gaming revenue (GGR) in Macau had only recovered to about 20 per cent of the pre-Covid-19 levels in December. That would be less than the average recovery of GGR in Macau.
The group accepts a more gradual recovery than expected but has hopes for the Chinese New Year holiday period.
That said, travel restrictions have dissuaded Chinese visitors from entering Macau even after the reinstatement of the Individual Visit Scheme (IVS). Self-service kiosks for IVS applications remain suspended, while the city demands a negative Covid-19 test result to avoid quarantine.
Goldman Sachs does not anticipate a change in strategy and believes Suncity will continue to expand into Asian markets outside of Macau.
The opening of its Vietnam casino and resort, Hoiana, in 2021 will be a major step in that direction, as well as the start of work on Phase II at Tigre de Cristal in Russia.
