Macau EBITDA to drop 6 pct in 2Q18
According to brokerage Morgan Stanley, EBITDA of Macau casinos for the second quarter of the year will be lower than the first.
Macau.- Brokerage Morgan Stanley has revealed that the earnings before interest, tax, depreciation, and amortization (EBITDA) of Macau casinos for the second quarter of 2018 will fall six per cent. According to the firm, the slow performance was reflected by declines in the VIP and mass market segments.
The brokerage’s analysts explained that gross gaming revenue (GGR) will also slow down to US$9.2 billion in the second quarter, four per cent less than the US$9.46 billion for the previous quarter. However, the GGR figure will still be higher year-on-yeay by 17 per cent.
MGM China is expected to have the largest quarter-on-quarter EBITDA decline at 13 per cent, while Galaxy Entertainment Group Ltd and SJM Holding Ltd. will sit at the other end, seeing the smallest declines at three and four per cent, respectively, Morgan Stanley says.
After poor GGR figures, Macau casino stocks were seriously affected as MGM China, Galaxy Entertainment and Wynn Macau dove more than 22 per cent from their highest for the year. Furthermore, it is expected that more bad news will come in July, when casino GGR may continue to be weak according to most gaming analysts.
