The downward trend in Macau’s gambling gross earnings is unlikely to stop before October, Morgan Stanley analysts predicted.
The company expects 35% losses due to the Coronavirus pandemic, a 16% drop from the previous estimate.
“This reduces our 2020 and 2021 EBITDA estimates by -37% and -18% respectively, due to fixed costs and negative operating leverage,” read a note.
Currently, Macau casinos have been reopened, but the strict border controls and the ongoing ban on Chinese travel groups and the individual visit regime are still evident and lead to a substantial drop in gambling.