+ 4.25
+ 1.17%
+ 2.33
+ 0.67%
+ 4.31
+ 0.99%

BofA Cuts Macau Estimates After 97% Year-Over-Year Drop In Gross Gaming Revenue

July 1, 2020 4:47 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
BofA Cuts Macau Estimates After 97% Year-Over-Year Drop In Gross Gaming Revenue

Macau reopened casinos to guests, but gross gaming revenue was still down 97% year-over-year in June — and down 59.4% month-over-month — to MOP716 million ($89.67 million), according to BofA Securities. 

The Macau Thesis: Macau's June GGR was lower than expected, as BofA was expecting an 80% year-over-year decline and the consensus estimate called for a 95% decline, analyst Billy Ng said in a Wednesday note. 

The month-over-month fluctuation could be due to the VIP win rate, as the gaming volume is mostly generated by a small group of players, the analyst said. 

July's GGR is likely to remain down 90% from last year assuming the border rules remain unchanged, he said. 

As it stands now, visitors from mainland China and Macau need to quarantine upon entry. Progress is being made on some agreement that would lift the quarantine for people from Guangdong province and Hong Kong, but it is proving to be more difficult than expected.

Due to limited visibility on when quarantine orders can be lifted, BofA expects full-year 2020 GGR to be down 70% year-over-year in Macau, worse than a prior estimate of a 41% drop. 

This assumption includes a first stage of reopening for business travel only in August and no full border normalization before 2021.

Related Links:

More Las Vegas Casinos Reopen, Demand 'Still Appears Low'

Majority Of Americans Believe Marijuana Use Just As Moral As Gambling

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Did Las Vegas Sands Q2 Earnings Disappoint? It Depends Which Analyst You Ask

The newly published second-quarter earnings report from Las Vegas Sands Corporation (NYSE: LVS) presented a glass-half-full/glass-half-empty consideration from a pair of leading analysts. read more

Morgan Stanley's Top Oil & Gas Plays Ahead Of Q2 Earnings

Despite a recent sector sell-off in oil and gas, a Morgan Stanley analyst cites a "consistent execution on spending" and strong excess cash flow usage "towards capital returns and debt reduction" as reasons to remain favorable. read more

Is Arqit's Quantum Encryption The Future Of Cybersecurity?

Quantum computing has always seemed like a technology that is far down the road. read more

How FAANGs Could Benefit From Chinese Regulatory Scrutiny Of Domestic Tech Stocks

Chinese regulators have started to tighten the leash on high-flying Chinese tech stalwarts such as Tencent Holdings Limited (OTC: TCEHY), Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. read more