S&P Global notes “strong recovery” in Macau’s mass gambling market

A “strong recovery” in Macau’s mass gaming industry is highlighted by S&P Global Ratings, which feels that this would help the city’s rated issuers deleverage more quickly. Because there are more hotels available and more people traveling to Macau, the organization expects rated issuers’ earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase in the next quarters.

Four Macau casino concessionaires are ranked by S&P Global: Sands China Ltd., Wynn Macau Ltd., MGM China Holdings Ltd., and Melco Resorts (Macau) Ltd.

EBITDA for rated issuers is predicted to be almost 95% of 2019 levels on average in 2024, with MGM China being the exception due to extra tables supplied by the Macau government.

According to S&P Global, Macau’s mass-segment casino gross gaming revenue (GGR) would climb by 5% to 15% in 2019 compared to pre-Covid levels, resulting in a 20% to 30% annual growth in 2024.

The growth of the premium sector is connected to the mass market’s strong momentum, and as more people visit Macau, base mass is expected to rise in tandem with a recovery in air passenger capacity to Macau and Hong Kong.

Since operators are unlikely to significantly expand junket VIP operations in the face of stricter regulations, it is anticipated that the amount of VIP play based on junkets will stay relatively consistent.

Original story by: GGRAsia