Macao Casino Operator Profits Will Grow 15% in 2022 - Morgan Stanley
Macau Casino Operators Have Very High Prospects for Increasing Their Revenue After Completion coronavirus pandemic. This is preceded by an increase in hotel capacity and cost reduction, analysts at the American financial conglomerate Morgan Stanley are sure.
The holding company claims that the gambling companies of the Asian capital of gambling will report an increase in total profit before deduction of all taxes and depreciation by 15%. The report said: "Macau in 2022 will look and feel much better than it does now."
Morgan Stanley explains its estimates by the fact that the capacity of local hotels next year will increase by 13%, while operating costs will be 4% lower. Companies will make $11 billion in profits and $20.6 million in daily operating expenses, down 4% from pre-coronavirus 2019.
It is also reported that during the crisis, Macau casino operators are reduced spending, resulting in a 31% reduction in spending in the fourth quarter compared to the same period in 2019. The number of employed in gambling establishments also decreased by 10%. Morgan Stanley expects staff cuts to become regular in the future.
Note that Sands China reopened its refurbished London Resort casino resort in February this year. In addition, SJM Holdings plans to resume its work with the opening of the Grand Lisboa Palace premium hotel. This development will contribute to a 59% increase in the number of luxury hotel complexes, which will help ensure high premium earnings in the mainstream segment.
In addition, the Morgan Stanley report expects China's nominal gross domestic income to rise to 122 trillion yuan, which is 22% higher than in 2019.
Recall that three giants of the gambling industrycompete for the right to build a casino in New York. 699