Global investment bank Credit Suisse Group AG has reportedly renewed its warning that the recovery of Macau’s casino industry could take much longer than originally expected due to lingering coronavirus-related travel restrictions.
The Zurich-based organization used an official note on Wednesday to advise investors that Enclave expects total gaming revenue of about $28.93 billion in 2024, according to a report by Inside Asian Gaming. The source described that figure as about 20% lower than the 2019 forecast of $36.17 billion and 18% lower than the financial services company’s previous forecast of about $35.45 billion in 2024.
Cause of capital:
Sardonna Fong, Lok Kan Chan, and Kenneth Fong, analysts at Credit Suisse Group AG, reportedly explained that Macau is expected to have difficulty attracting many once-common mainland gamblers due to China’s ongoing policies aimed at preventing the spread of the coronavirus pandemic. Those measures are said to include being silent about cross-border visa issuance as well as quarantine periods and a crackdown on people who have visited foreign casinos more than three times since early 2019.
Credit Suisse Group AG says they read the note…
“We believe restrictions on frequent gamblers, particularly outside Guangdong, will remain in place amid China’s cross-border gaming efforts, even if future coronavirus impacts normalize.”
Stock Price Fall:
Inside Asian Gaming reports analysts have lowered their individual target price for six strongly licensed casino-run clubs in Macau by as much as 59%, reflecting expected weak demand. The sources say the move presumes China will not ease current cross-border travel restrictions before the first quarter of next year, and that the region will see its initial public market margins slimmed down due to increased marketing costs for leisure players.
BY: 파워볼사이트