Citi expects big six EBITDA to remain strong

Investment bank Citi has stated it expects the combined EBITDA margins for Macau’s six gaming concessionaires to have remained strong in the June 2024 quarter, at approximately 28%, despite a decrease in both gross gaming revenues and profitability. According to Citi’s George Choi and Ryan Cheung, industry EBITDA is likely to have decreased about 5% quarter-on-quarter to USD1.95 billion, even though GGR only fell by 1.6% quarter-on-quarter to MOP56.4 billion. However, Citi’s analysis indicates that the EBITDA margin for the six casino operators as a whole is still relatively strong at around 28%, despite the significant impact of The Londoner Phase 2 renovations and weaker retail sales.