According to a Morgan Stanley report, Macau SAR game operators are expected to suffer an EBITDA loss of nearly US $ 800 million by the end of 2022 after the most recent pandemic.

Securities firms predict that the industry’s positive EBITDA will end at $ 991 million at the beginning of the year in 2022, and this year’s total annual game revenue will drop from $ 11 billion reported in 2021 to $ 7 billion. It was expected.

“We believe that the 2022 GGR will be -38% year-on-year, worse than 2021, due to occasional occurrences.
2022 COVID surge and lockdown in mainland China and Macau.
Analysts at Morgan Stanley predict in the report that the full resumption of travel will only begin in the second quarter of 2011.

Therefore, new estimates show that GGR’s total game revenue forecasts for 2022 and 2023 fell to 18% and 44%, respectively, at 2019 levels when they reached approximately 292.4 billion MOP (US $ 36.1 billion). ..

Since June 18, more than 1,700 confirmed Covid cases have been found in Macau, and all non-critical business operations, including casinos, have been ordered to end after July 11.

The brokerage firm also pointed out that in a zero-revenue scenario, the gaming industry’s cash burn could be as high as US $ 2.2 billion.

“Most operators” cash and unused liquidity can support cash burns (including development capital investment) of less than two years. Sands and SJM can only support 15 and 9 months, respectively. Wynn Macau, MGM China, MLCO 19-20 months. “Galaxy 27 months” and its report have been added.

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