down from a previous estimate of US$6.90bn<\/a>. <\/p>\n\n\n\nThey project that the sector’s net revenue will reach US$24.05bn, with an industry-wide net profit of US$2.20bn, a 16 per cent decline from the previous estimate of US$2.61bn due to increased operating costs for Macau’s casino operators as business volumes continue to rise.<\/p>\n\n\n\n
They have reduced their EDITBA protection for Sands China <\/strong>by 4 per cent to US$2.20bn due to lower mass-market share assumptions. They dropped the forecast for\u00a0Galaxy Entertainment\u00a0<\/strong>by 12 per cent to HK$11.18bn (US$1.43bn), primarily due to lower actual EBITDA figures for the second quarter, and the forecast for Wynn Macau <\/strong>by 7 per cent to HKD6.33bn, based on reduced market share assumptions.<\/p>\n\n\n\nHowever, two casino operators experienced positive adjustments in their 2023 EBITDA estimates. Morgan Stanley increased its EBITDA estimate for\u00a0MGM China Holdings Ltd<\/strong>\u00a0by 1 per cent, to HKD6.01bn and raised their estimate for\u00a0Melco Resorts & Entertainment<\/strong> by 8 per cent to US$1.07bn, primarily due to lower operational expenditure.<\/p>\n\n\n\nMorgan Stanley has also\u00a0lowered its 2024 EBITDA and net profit estimates for Macau’s gaming industry by 2 per cent. This adjustment is based on a lower slot revenue estimate, although overall gross gaming revenue remains unchanged due to higher VIP estimates.<\/p>\n\n\n\n
Analysts emphasised that\u00a0mass-market revenue in Macau has already returned to pre-Covid levels. However, they suggested that future outperformance depends on various factors, including reaching mass revenue levels of 120 per cent of 2019, gaining market share, maintaining operational expenditure discipline and managing financial leverage.<\/p>\n","protected":false},"excerpt":{"rendered":"
Morgan Stanley cites a slightly slower-than-expected market recovery.<\/p>\n","protected":false},"author":176,"featured_media":19810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Morgan Stanley has revised its 2023 and 2024 EBITDA and net profit estimates for Macau's six casino operators downwards, reflecting a slower-than-expected market recovery. While mass-market revenue has returned to pre-Covid levels, future outperformance hinges on exceeding 2019 mass revenue, market share gains, OpEx discipline, and financial leverage management. MGM China and Melco Resorts saw positive adjustments due to lower operational expenditure.","focusai_entities":"Morgan Stanley, Praveen Choudhary, Gareth Leung, Stephen Grambling, Nicholas DeValeria, Sands China, Galaxy Entertainment, Wynn Macau, MGM China Holdings Ltd, Melco Resorts & Entertainment","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.95), regulator (0.75), operator_casino (0.98), investor_analyst (1.0), supplier_vendor (0.85), journalist_researcher (0.9)","focusai_suggestions":[{"label":"OpEx Discipline Impact?","query":"What specific operational expenditure efficiencies are driving the positive adjustments for MGM China and Melco Resorts, and are these sustainable across the broader Macau gaming sector?"},{"label":"Capital Expenditure Outlook?","query":"Given the revised EBITDA estimates and slower recovery, what are the likely implications for the capital expenditure plans and non-gaming investment strategies of Macau's major concessionaires in 2024?"}],"footnotes":""},"categories":[157,16338],"tags":[23906],"class_list":["post-777009229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777009229","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=777009229"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777009229\/revisions"}],"predecessor-version":[{"id":777009240,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777009229\/revisions\/777009240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/19810"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777009229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777009229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777009229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}