{"id":31878,"date":"2022-07-19T04:02:34","date_gmt":"2022-07-19T07:02:34","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=31878"},"modified":"2026-04-23T06:45:19","modified_gmt":"2026-04-23T09:45:19","slug":"macau-casinos-likely-to-end-2022-with-us800m-in-ebitda-losses","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/macau-casinos-likely-to-end-2022-with-us800m-in-ebitda-losses","title":{"rendered":"Macau casinos likely to end 2022 with US$800m in EBITDA losses"},"content":{"rendered":"\n

Analysts at JP Morgan Securities predict that Macau casino operators will end the year with nearly US$800m in EBITDA losses due to the most recent Covid-19 pandemic outbreak.<\/p>\n\n\n\n\n\n\n\n

Macau.-\u00a0Analysts at JP Morgan Securities<\/strong>\u00a0have published a report estimating that Macau casino operators will end the year with approximately US$800m in EBITDA losses due to the most recent outbreak of Covid-19 cases, which began\u00a0almost a month ago<\/a>.<\/p>\n\n\n\n

The brokerage had previously predicted EBITDA of US$991m and a GGR of US$7bn. However, analysts now predict that Macau\u2019s casino\u00a0gross gaming revenue\u00a0<\/strong>(GGR) will reach only 19 per cent of 2019 levels this year. They expect 2023 GGR could rebound to 40 per cent of pre-pandemic levels. In 2019, Macau reported full-year gross gambling revenue of MOP292.4bn (US$36.1bn).<\/p>\n\n\n\n

On July 11, all non-essential business operations, including casinos, closed their doors. Casinos were to remain closed until yesterday (July 18), but the government has extended the closure until Friday July 22<\/a>.\u00a0\u00a0<\/p>\n\n\n\n

The brokerage company noted that with no revenue, the gaming industry cash burn could be as high as US$2.2bn. Since 18 June, Macau has recorded 1,765 Covid cases. Authorities reported 10 new confirmed cases in the last 24 hours.<\/p>\n\n\n\n

JP Morgan had previously said it believes casino operators SJM Holdings Ltd and Sands China Ltd currently have a minimum nine-month liquidity runway through March 2023.<\/p>\n\n\n\n

Wynn Macau Ltd, MGM China and Melco Resorts currently have \u201ca year and a half to two years of liquidity\u201d \u2013 enough to \u201cweather through zero revenues until mid-2024\u201d. Galaxy Entertainment Group Ltd, has five years\u2019 liquidity, according to the analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts at JP Morgan Securities predict that Macau casino operators will end the year with nearly US$800m in EBITDA losses due to the most recent Covid-19 pandemic outbreak.<\/p>\n","protected":false},"author":176,"featured_media":26697,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"JP Morgan Securities has significantly downgraded its financial projections for Macau casino operators, forecasting US$800m in EBITDA losses for the year and GGR reaching only 19% of 2019 levels due to extended Covid-19 closures. The analysis underscores substantial cash burn potential and provides critical assessments of individual operators' liquidity runways, indicating varying capacities to withstand prolonged revenue cessation.","focusai_entities":"JP Morgan Securities, SJM Holdings Ltd, Sands China Ltd, Wynn Macau Ltd, MGM China, Melco Resorts, Galaxy Entertainment Group Ltd","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.95), regulator (0.75), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"GGR Rebound Drivers?","query":"What specific policy interventions, such as border reopening protocols or travel facilitation measures, are critical for the projected 2023 GGR rebound to 40% of pre-pandemic levels, and what are the key sensitivities to this forecast?"},{"label":"Long-Term Capital Impact?","query":"Beyond immediate liquidity, how might prolonged zero-revenue periods affect Macau operators' long-term capital expenditure commitments, particularly concerning non-gaming diversification, and their ability to meet future concession renewal requirements?"}],"footnotes":""},"categories":[16338,163],"tags":[23906],"class_list":["post-31878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/31878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=31878"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/31878\/revisions"}],"predecessor-version":[{"id":31905,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/31878\/revisions\/31905"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/26697"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=31878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=31878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=31878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}