acau casino operators are expected to post a loss of over $1 billion collectively in their earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter ended June 30, according to a Bloomberg survey of analyst estimates.
Each of the six operators will likely have negative quarterly EBITDA when they start reporting earnings in the coming weeks, according to the survey of eight brokerages. SJM Holdings Ltd. and MGM China Holdings Ltd. are expected to lead the tally of year-on-year declines.
Macau’s casino industry saw gaming revenues plunge by more than 90% for three straight months starting April as the pandemic-causing novel coronavirus forced countries to shut borders. Recovery prospects brightened for the world’s largest gambling hub after neighboring Chinese province Guangdong lifted quarantine requirements for travelers returning from Macau this month.
China restarting the individual visas, called IVS, is the next awaited step. “The initial enthusiasm around border easing is a sign of some pent up demand, but without IVS restart, V-shape recovery is not expected,” Sanford C. Bernstein analyst Vitaly Umansky said in a July 20 note.