{"id":34431,"date":"2022-10-13T22:21:53","date_gmt":"2022-10-14T01:21:53","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=34431"},"modified":"2026-04-23T03:57:44","modified_gmt":"2026-04-23T06:57:44","slug":"macau-casino-operators-lost-us1-5bn-in-q3","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/macau-casino-operators-lost-us1-5bn-in-q3","title":{"rendered":"Macau casino operators lost US$1.5bn in Q3"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Morgan Stanley has reported that casino operators collectively saw negative corporate EBITDA of about US$600m.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">Macau.- The two-week <a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/macau-casinos-will-remain-closed-for-another-five-days\" target=\"_blank\">closure of the casinos<\/a> and lack of tourists in July as a result of a new outbreak of Covid-19 cases contributed to a loss of US$1.5bn for the Macau gaming industry in Q3. Morgan Stanley has reported that<strong> the industry&#8217;s net debt rose to US$24bn<\/strong>, and it expects that could rise again this quarter depending on the impact of <a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/macau-casino-operators-could-return-to-positive-ebitda-in-q4\" target=\"_blank\">e-visa\/package tours<\/a> and China&#8217;s Covid-19 zero policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Casino operators collectively saw gross gaming revenue (GGR) of MOP5.5bn and <strong>negative corporate EBITDA of about US$600m<\/strong> for the third quarter. There were just 7,700 visitors frmo mainland China, down 50 per cent when compared to the previous quarter. The number of visitors improved in September.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Morgan Stanley, the industry will have burnt US$1.5bn of cash in Q3 (vs. US$1.4bn in Q2 2022). It forecasts that EBITDA will reach only 8 per cent of 2019 levels in the last quarter of the year.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fitch: Macau\u2019s gaming sector won\u2019t see full recovery until beyond 2024<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to Fitch Ratings Inc,&nbsp;<strong>continued Covid-19 cases in China<\/strong>&nbsp;and regulatory uncertainty means that gross gaming revenue will reach only <strong>70 per cent<\/strong>&nbsp;of 2019 levels in two years\u2019 time. They warned that as well as China\u2019s likely continuation of its zero-Covid policy, slower economic growth could also affect gaming in Macau.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Local gaming expert Wang Changbin has previously predicted that&nbsp;<a target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/chinas-zero-covid-policy-likely-to-continue-until-2023-analysts-say\" rel=\"noreferrer noopener\">China\u2019s zero-Covid policy<\/a>&nbsp;is likely to continue until 2023, which means a continued drawn-out recovery for Macau\u2019s gaming industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley has reported that casino operators collectively saw negative corporate EBITDA of about US$600m.<\/p>\n","protected":false},"author":176,"featured_media":27875,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Macau's gaming industry incurred a US$1.5bn loss in Q3, reporting negative corporate EBITDA of US$600m and GGR of MOP5.5bn, primarily due to COVID-19 closures and China's zero-COVID policy. Net debt escalated to US$24bn, with analysts from Morgan Stanley and Fitch Ratings forecasting a protracted recovery, projecting GGR will not reach 2019 levels until beyond 2024 amidst ongoing policy and economic headwinds.","focusai_entities":"Morgan Stanley, Fitch Ratings Inc, Wang Changbin","focusai_location":"Macau, China","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Q4 GGR Impact?","query":"What is the projected impact of e-visa and package tour resumption on Macau's Q4 GGR and EBITDA performance?"},{"label":"Debt Covenant Management?","query":"How are Macau's concessionaires managing their debt covenants and liquidity positions given the prolonged recovery timeline and increased net debt?"}],"footnotes":""},"categories":[16338,163],"tags":[23906],"class_list":["post-34431","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\/34431","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=34431"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/34431\/revisions"}],"predecessor-version":[{"id":34466,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/34431\/revisions\/34466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/27875"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=34431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=34431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=34431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}