Macau Gaming Revenue Plunges 97% In April Amid Coronavirus Pandemic

 In April, JPMorgan analyst DS Kim said casino operators "have ample liquidity to survive this unprecedented period of 'near-zero revenue' for over a year." Peer Joseph Kim upgraded Las Vegas Sands to Overweight on April 23, saying the current "dreadful" run-rate monthly year-over-year gross gaming revenue declines of ~95% for Macau will improve from here, and Las Vegas Sands possesses an above peer liquidity position, adds the analyst. Greff views the company as a way to play what should be improving GGR trends in Macau and a recovery in gaming and travel.

Stifel analyst Steven Wieczynski Las Vegas Sands' management "made it abundantly clear" that pent up demand in both Macau and Singapore should allow operations to bounce back relatively quickly once forced closures and travel restrictions are lifted. Although COVID-related disruptions have altered the trajectory of Las Vegas Sands' near-term cash generation, he sees "nothing at this point that we believe poses a structural threat" to the company's dominant position in Macau, Wieczynski said.

On April 13, Citi analyst George Choi upgraded Wynn Resorts to Buy from Neutral. In a research note to investors, Choi says he is a firm believer in the long-term Macau growth story, despite the near-term GGR headwinds.


In morning trading, Las Vegas Sands fell 5.7%, while MGM dropped 9%, Wynn Resorts declined 6.2% and Melco Resorts shares trading in New York were down about 4.2%.


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