Good morning. The Star isn’t shining quite as bright as it used to. The group now says that its ability to continue is a going concern, as it struggles to draw in more capital from investors, unlock a new tranche of loans, and pray for government tax rebates. Meanwhile, in Macau, Chinese New Year is again set to bring a wave of tourists, however, hotel room rates are expected to fall when compared to previous Golden Weeks. But for the whole of 2025, GGR in the world’s gambling hub is set to increase, with analysts expecting a moderate single-digit rise driven by mass.
What you need to know
- The Star admits that there is uncertainty that the group may be able to continue, as its financial woes worsen.
- Morgan Stanley survey shows that hotel room rates for CNY 2025 in Macau are projected to drop by 15-40%, but visitor numbers are expected to grow.
- Macau’s GGR in 2025 could grow by 5-6%, as strong increases in mass compensate soft VIP: S&P Global.
On the radar
- PAGCOR Chairman confident eGames tax rate cuts will stimulate growth.
- Largest-ever CNY Mark Six snowball draw scheduled for Feb. 2nd in HK.
- The Star’s HK-listed partners in town to discuss financial lifeline: report.
- Cambodia sets ambitious goal of 7 million international tourists for 2025.
- House to form committee targeting vloggers funded by illegal POGOs.
- ASEAN pledges joint efforts to fight transnational crime and online scams.
- SJM Resorts announces salary increase effective from April 2025.
- Melco announces salary increase for non-management staff.
AGB Intelligence
AUSTRALIA
The Star’s ability to continue a going concern
Unless The Star is able to secure new financial lifelines, there is ‘material uncertainty as to the group’s ability to continue’. The company shared lackluster details of its results from the final quarter of 2024, showing some improvements but not emboldening investors to part with more money. Unless it can secure requested tax rebates from state governments, or drum up enough capital to unlock its next tranche of loans, the group could be in dire straits.
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