Your Daily Asia Gaming eBrief: Waiting game for Macau

Macau

Good morning. Now that Macau’s operators have filed their 2Q21 results, it’s obvious that while revenue in Las Vegas is powering ahead on pent-up demand, the same can’t yet be said about Macau. Analysts say recovery has been dragging mainly to Macau’s low tolerance rates for Covid and continuing low vaccination rates. Our deep-dive today is an analysis of Macau operators 2Q results – where we share analysts’ latest thoughts on Macau’s road to recovery. 


What you need to know

  • Mohegan Sun’s partner Oshidori Group has pulled out of the IR bidding process, saying the demands of the Nagasaki govt are “unreasonable.”
  • Yokohama’s mayoral elections will see citizens place their votes for one of eight candidates, six of which are against the establishment of IRs.
  • Singapore says it will begin easing travel restrictions for fully vaccinated travelers from countries it considers to be safe from August 20th.
  • No positive cases found in Macau after mass testing, authorities discuss relaxation of border measures.
  • Sega Sammy 2Q21 results were boosted by its pachislot and pachinko business, though travel restrictions continue to hurt resorts revenue.

On the radar

  • Crown Melbourne closed all facilities except hotel amidst 7-day lockdown.
  • Crown exec told China staff to take “low-key” approach before arrests.

What the papers say

  • SG aims to become an esports superpower, with new center opening. 
  • Fanter Corp. wants Clear Management to be appointed to auction IPI assets.
  • Saipan has effectively doubled the tax rate for slot machine parlors.

AGB Intelligence


Macau Tourism

Waiting game continues for Macau after lacklustre 2Q results

Macau operators continue to express confidence over substantial pent-up demand, however, while revenue in Las Vegas powers ahead, the world’s biggest gambling hub is slow to get back on its feet. During an analyst conference calls to discuss recently released 2Q21 results, executives expressed optimism about long-term prospects for the market.

However, recovery is dragging due to Macau’s zero-tolerance rates for Covid and continuing low vaccination rates. Most of the operators to have reported so far remained in the black at the EBITDA level thanks to cost-cutting and operational efficiencies, but the top-line growth isn’t there and analysts continue to trim their forecasts for this year and next. 

Industry Updates


Your Daily Asia Gaming eBrief: Waiting game for Macau

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