The Macau gaming sector’s 2020 gross surplus totalled MOP22.13 billion (US$2.76 billion), the lowest tally since 2005, according to a compendium of data released on Friday by the city’s Statistics and Census Service.
The sector’s 2020 gross surplus declined by 87.9 percent, compared to 2019′s.
The 2020 “gross value added” – a gauge of the sector’s contribution to the overall economy – declined by 79.6 percent year-on-year, to MOP41.85 billion, as the city’s gaming and hospitality trade suffered a slump coinciding with the Covid-19 pandemic and associated travel restrictions.
The gaming sector’s gross surplus ratio – which reflects its capability to convert receipts into gross surplus – was down by 26.1 percentage points year-on-year to 36.1 percent, a “record low” since the gaming sector survey was first conducted in 2004, the census service said.
The total receipts of the nine enterprises that were engaged in gaming activities – including non-casino firms such as those involved in lottery and sports betting – amounted to MOP63.94 billion in 2020, a decline of 78.4 percent year-on-year.
In 2020, the receipts from gaming and related services decreased by 79.1 percent year-on-year to nearly MOP61.29 billion. This measurement covers receipts from bets placed by customers in gaming activities. It also covers receipts from sale of food and drink; from currency exchange; and other receipts, including gratuities, rents, and cultural and entertainment activities.
The Macau gaming sector’s total expenditure in 2020 amounted to MOP46.42 billion, down by 60.6 percent from 2019. The largest share of the sector’s total expenditure was on employee “compensation” – namely pay and benefits – which amounted to MOP19.71 billion.
Nonetheless, the gaming sector’s employee compensation in 2020 represented a decline of 12.5 percent year-on-year.
Operating expenses in 2020 declined by 68.8 percent year-on-year, to MOP9.95 billion. Of that aggregate, the costs on complimentary goods and services provided to customers, such as hotel accommodation as well as food and drink, decreased by 74.5 percent, to nearly MOP4.64 billion.
Costs in 2020 on management services and contractual services also declined by 70.7 percent, to just above MOP1.87 billion.
The gaming sector’s non-operating expenses in 2020 amounted to MOP7.33 billion, up by 6.5 percent year-on-year. These expenses cover the sector’s interest payments and depreciation.
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Amount that each Macau casino operator paid for the circa six-month extension of their respective contract