Macau casinos are expected to post losses of $823 million during the third quarter of 2020, following six straight months of revenue loss. According to a Bloomberg survey of analyst estimates, the Macau casino operators will post losses in earnings before interest, tax, depreciation, and amortization for the quarter ended September 30.
Each of the six operators in the tiny autonomous territory, yet the largest gambling destination, will show negative results to the brokerage firm. However, it comes as no surprise following the sixth consecutive month witnessing a 90%+ revenue plunge, thanks to the pandemic-led effects that shut the country borders.
According to analysis, SJM Holdings Ltd. and MGM China Holdings Ltd. are likely to report the biggest percentage changes from a year before at -171% and -150%, respectively. The smallest percentage change is likely to be reported by Galaxy Entertainment Group and Melco Resorts and -127% and -129%, respectively.
Below is a list of the casinos and their year-on-year quarterly revenue drop:
- SJM Holdings: -171%
- MGM China: -150%
- Wynn Macau: -144%
- Sands China: -132%
- Melco Resorts: -129%
- Galaxy Entertainment: -127%
The industry average is expected to be a -135% change compared to the same quarter in 2019.
During the third quarter, gross gaming revenue dipped 93% compared to a 95.6% squeeze in the second quarter. That sequential improvement amounted to a 51% growth quarter-to-quarter.
A gradual recovery is underway following China’s ease in travel bans over the past quarter. However, tough entry requirements still make it complicated for mainland VIPs to visit the city. As a result, Macau is struggling to regain its past glory as the world’s largest gambling hub.
The recent “Golden Week” holiday also brought disappointment for the Macau authorities as it failed to draw tourists. This year brought 84% fewer tourists from mainland China compared with 2019. With the gloom persisting for the last six months, all eyes are on the 2020’s fourth quarter.