Macau op Q2 EBITDA LOSS US$544 MILLION

Morgan Stanley Asia Inc’s Wednesday memo said the combined Q2 earnings of six casino operators in Macau in terms of interest, taxation, depreciation and pre-amortization losses could be equivalent to $544 million, compared to a consensus view of $99 million.

Analysts Pravin Choudhary and Gareth Leung said it was “the third-lowest quarter since 2020.”

A recent memo from JP Morgan Securities (Asia Pacific) did not expect the Macau operator to post a positive EBITDA in Q2. 경마사이트프로

The Morgan Stanley team added that the Macau industry would “burn $1.5 billion in cash” in the second quarter, including development capital, compared to $1 billion in total cash in the first quarter.

The Macau operator most likely hit by nearly HK$1.05 billion ($133.5 million) in the three months to June 30, which covers the near-stagnation of Macau tourism since COVID-19, which began June 19.

Macau recorded a total of 1,303 COVID-19 cases in the current outbreak as of 0:00 on Thursday, with 88 new confirmed cases in 24 hours.

Morgan Stanley analysts point out that theoretically zero quarterly revenue in the future has left no exit in sight so far for the current Macau crisis. “Cash losses in the industry could amount to $2.2 billion.

Still, Morgan Stanley analysts said they saw “increasing investor interest in the industry” after mainland Chinese authorities recently announced some easing regarding quarantine conditions for inbound travel to the mainland.

Still, anyone currently eligible to travel from Macau to Zhuhai, neighboring mainland Guangdong Province, will be required to undergo a seven-day quarantine, a major drag on industry watchers considering a visit to Macau.

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