Macau's Gambling Revenue Plunges 93% in May

Companies with a presence there include Wynn Resorts, Las Vegas Sands and MGM Resorts.
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Macau reported Monday that its gambling revenue fell 93% to $1.764 billion patacas ($229 million) in May from 25.952 billion patacas a year earlier.

Casinos around the world have been hit hard by shutdowns stemming from the coronavirus pandemic.

The Macau revenue slumped 74% for the first five months of the year as a whole from a year earlier.

Among the major companies with casinos in Macau are Wynn Resorts  (WYNN) - Get Report, Las Vegas Sands  (LVS) - Get Report and MGM Resorts  (MGM) - Get Report.

Morningstar analyst Dan Wasiolek last month offered positive on all three of those casino companies.

“Although the coronavirus pandemic stands to materially affect near-term travel and leisure demand, and Las Vegas Sands is no longer pursuing a gaming license in Japan, we view the company as well positioned for long-term growth in the gaming industry because of the attractive long-term growth opportunity of Macau (59% of 2019 EBITDA) and Sands' dominant mass and non-gaming position on the attractive Cotai Strip,” he wrote last month.

As for MGM, despite the pandemic’s impact, “we think no-moat MGM Resorts' healthy financial position will see it through this turmoil, and position it to maintain its leading presence in the lower-growth, lower-barrier-to-entry Las Vegas region (47% of 2019 EBITDAR) while participating in the attractive long-term growth opportunity of Macau (21% of EBITDAR),” Wasiolek wrote last month.

And as for Wynn, again notwithstanding the pandemic, “we view Wynn Resorts as a high-end iconic brand that is well positioned to participate in the attractive long-term growth opportunity of Macau (76% of 2019 EBITDA),” he wrote. 

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