Reports & Data

CLSA estimates casino operators’ EBITDA for Q4 2023 to rebound to 82 pct of 2019 level

Wednesday 17 de January 2024 / 12:00

⏱ 1 min read

(Macau).- The gaming sector’s adjusted EBITDA for the fourth quarter of 2023 is expected to see an 8 per cent quarter-on-quarter increase to US$1.97 billion (MOP15.9 billion), a recovery to 82 per cent of the pre-pandemic level, brokerage firm CLSA said.

CLSA estimates casino operators’ EBITDA for Q4 2023 to rebound to 82 pct of 2019 level

The forecast implies that sector EBITDA margin, compared with the overall gross gaming revenue (GGR) before netting rebates, will remain flattish quarter-on-quarter at 24 per cent.

In a Tuesday note, analysts Jeffrey Kiang, Stella Liu and Leo Pan said that during the upcoming Chinese New Year(CNY) holiday period, the scope of EBITDA margin expansion, rebates and operational granularity, would remain key investor focuses.

The analysts highlighted that hotel bookings in Macau were “fast picking up again”. Four weeks ahead of the CNY weekend (February 10-11), the four-week leading average hotel prices have already rose by 27 per cent year-on-year.

Furthermore, out of the 33 hotels surveyed by CLSA, 10 have already been fully booked for the CNY weekend, indicating high demand.

CLSA’s 2024 GGR forecast remains unchanged at US$29.2 billion, representing a 30 per cent year-on-year growth, while mass GGR for 2024 is expected to be 18 per cent higher than the 2019 level.

The analysts adjusted corporate expense forecasts and trimmed sector EBITDA forecasts for 2023 and 2024 by roughly 1 per cent to US$6.1 billion and US$8.4 billion, respectively.

By Therese Tu

Categoría:Reports & Data

Tags: Sin tags

País: Macao

Región: Asia