Asia’s gaming stocks have been pummelled by the outbreak of the coronavirus, but with signs China may be bringing the disease under control, is it nearing the time to re-enter the market?
The Association of Gaming Equipment Manufacturers Index showed a greater than 13 percent decline in February from the prior month, with every single member in the red as investors sought to assess the fallout from the outbreak.
Stocks in the operators have also taken a beating, with Wynn Resorts down more than 22 percent since its January highs, Melco Resorts & Entertainment is down about 38 percent, while Genting Singapore is off 26 percent and South Korea’s Paradise Co. down 34 percent to name but a few.
Gross gambling revenue in Macau dropped 87 percent in February, after a 15-day closure of the casinos, and is forecast to decline a further 80 percent this month. In a worst-case scenario, under...
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.