• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau casino 4Q 2020 EBITDA up 140pct on 1Q: MS

Jan 13, 2021 Newsdesk Latest News, Macau, Top of the deck  


Macau casino 4Q 2020 EBITDA up 140pct on 1Q: MS

Banking group Morgan Stanley expects Macau casino industry earnings before interest, taxation, depreciation and amortisation (EBITDA) will have risen 140 percent in the fourth quarter, compared to the first quarter of 2020.

The Macau industry was likely to report in the upcoming earnings season “total positive corporate EBITDA of approximately US$240 million in fourth quarter 2020,” wrote analysts Praveen Choudhary, Gareth Leung and Thomas Allen, in a Tuesday memo.

“This is much better than the first quarter, when the industry made only US$100 million” in such EBITDA, they observed. But the “normal EBITDA run rate of US$2.3 billion per quarter in 2019 is still far away,” they added.

The improvement was likely to be driven by “lower operating costs as well as better revenue mix” in terms of gross gaming revenue (GGR).

“Industry daily operating expenses declined by 38 percent year-on-year in third-quarter 2020, and we expect a similar decline in fourth-quarter 2020,” said the Morgan Stanley team.

“This is because … staff were let go or asked to take voluntary leave. The majority of this cost cutting will come back as volume increases,” added the analysts.

Higher contribution from mass-market gambling was likely to have resulted in “higher margin” for the Macau operators, suggested the institution.

“We expect VIP to be 21 percent of GGR in fourth quarter 2020, compared with 42 percent in first quarter 2020.”

Morgan Stanley estimated VIP revenue declined by 83 percent year-on-year in fourth-quarter 2020, while it thought mass revenue declined by “only” 62 percent year-on-year.

The official data on the market split for the three months to December 31 is expected next week from the Macau government.

Mass-market and VIP GGR combined in fourth quarter 2020 was down 69.7 percent year-on-year, at just under MOP21.84 billion (US$2.73 billion), versus nearly MOP72.16 billion in the same quarter a year earlier, show data from the local regulator, the Gaming Inspection and Coordination Bureau.

Morgan Stanley noted the just-concluded fourth quarter was also likely to have seen “improvement” in money brought in from shop rents at resort malls, including via “turnover rent”.

The banking group associated that with improved consumer demand for shopping in Macau, since the restoration – across mainland China from late September – of the Individual Visit Scheme, the exit visa system under which independent travellers from the mainland can come to the gambling hub.


  • tweet
Related articles
  • Gaming, fintech drives Everi to record 1Q results
    Gaming, fintech drives Everi to record...

    May 11, 2022  

  • Philippine casino GGR poss 85pct pre-pandemic by 4Q: MS
    Philippine casino GGR poss 85pct...

    Apr 21, 2022  

More news
  • Manila Westside launch aim still 2024: Suntrust
    Manila Westside launch aim still 2024:...

    May 23, 2022  

  • L&W says plugged in to ETG needs of players, casinos
    L&W says plugged in to ETG needs...

    May 23, 2022  


Latest News

Manila Westside launch aim still 2024: Suntrust

Manila Westside launch aim still 2024: Suntrust

May 23, 2022  

The year 2024 is still the targeted start date for operation of a five-star hotel and casino complex at the Westside City Project (pictured in an artist’s rendering) in Manila, the Philippine...
Read More
L&W says plugged in to ETG needs of players, casinos

L&W says plugged in to ETG needs of players, casinos

May 23, 2022  

Review saw no irregularity in Levo Chan link: Macau Legend

Review saw no irregularity in Levo Chan link: Macau Legend

May 23, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”We anticipate being live with iGaming products in two jurisdictions in the U.S. by the end of calendar year 2022"

Trevor Croker

Chief executive and managing director of Aristocrat Leisure



Most Popular

  • Foreign tourists can get S.Korean peninsula visa from June 1Foreign tourists can get S.Korean peninsula visa from June 1 May 20, 2022
  • Review saw no irregularity in Levo Chan link: Macau LegendReview saw no irregularity in Levo Chan link: Macau Legend May 23, 2022
  • Crown Resorts’ shareholders nod Blackstone bidCrown Resorts’ shareholders nod Blackstone bid May 20, 2022
  • Wynn CEO, Macau execs in base pay cut in return for sharesWynn CEO, Macau execs in base pay cut in return for shares May 17, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us