According to Union Gaming analysts, the Macau gaming industry could see a post-Coronavirus recovery throughout 2021.<\/p>\n
Macau.- The Macau gaming industry could see a \u201csequential recovery\u201d in business post-Coronavirus throughout 2021, according to\u00a0Union Gaming Securities LLC.<\/em><\/strong><\/p>\n Analysts revealed in a note that operators could casino gross gaming revenue (GGR) return to approximately 80 per cent of 2019 levels by the end of the year.<\/p>\n The analysts said that travel restrictions imposed by the city and authorities in mainland China could contribute to \u201ca quicker and more sustainable recovery\u201d by helping to stop the spreads of Covid-19.<\/p>\n \u201cHowever, in the interim, the impact of unprecedented GGR declines and cash burn experienced by all concessionaires in the market seems to be under-appreciated by investors,\u201d the brokerage wrote.<\/p>\n \u201cIn general, we are forecasting Macau GGR to decline approximately 75 per cent in second-quarter 2020 across the board, by about 45 per cent in third-quarter 2020\u00a0and 25 per cent in fourth-quarter 2020,\u201d Union Gaming\u2019s Mr DeCree and Mr Ghafir wrote.<\/p>\n \u201cWe forecast a sequential recovery throughout 2021 with operators largely getting back to approximately 80 per cent of 2019 GGR benchmarks by year-end.<\/p>\n \u201cOur overall market estimate may seem overly conservative, but at this point there is just no visibility and we find it prudent to be more cautious,\u201d they added.<\/p>\n The brokerage also said it broadly expects Macau gaming operators\u2019 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) to recover to approximately 80 per cent of 2019 levels.<\/p>\n