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Home›Macau›Analysts: Macau casinos still robust in long term
Gaming

Analysts: Macau casinos still robust in long term

By Anthony Lam, MDT
Monday, July 18, 2022
86
0

Market analysis agency Daiwa Capital Markets Hong Kong Limited expects Macau casinos to remain solvent in the long term despite current challenges.

In an interview with Hong Kong media Ming Pao Daily, the market analysts pointed out that the city’s casino operators are in the process of moving towards zero revenue, in contrast to “dynamic Covid zero.”

It added that five of the operators have, since 2020, issued debts totaling USD9.35 billion, with Sands China issuing USD3.45 billion. Their expirations range between January 2026 and August 2031.

However, the popularity of the debts and the long validities imply creditors’ confidence in the operators, Daiwa explained. As such, the analysts are confident in the city’s casino operators in the long run, especially Galaxy Entertainment Group, which has a strong balance sheet that shows it has the liquidity to operate for three years.

Another analysis agency, Citigroup, cited “industry sources” that said the industry had only generated MOP200 million gross gaming revenue (GGR) in the first 10 days of July. Last month, GGR totaled MOP2.49 billion.

The city’s July GGR may see record lows as the government has ordered suspension of operations between July 11 to 22. 

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