Macau on cusp of profit surge
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Macau on cusp of profit surge

Some analysts now expect Macau’s profit to climb back to heights last experienced prior to Xi Jingping’s anti-corruption crackdown, when high rollers were driven away from the tables. If they’re right, they see a new peak being hit in 2019 – assuming that no new crackdowns come out of Beijing. According to Bloomberg, revenues are set to rise 14% next year alone, largely driven by VIP gamers and “a flood of leisure tourists”.

graph 1221 macau 1

Morgan Stanley also sees profit rising in Macau. The firm says that earnings could reach $8.4 billion in 2018, and hit an all-time high of $9.6 billion in 2019. In regards to market share, the “big four” (Sands, Galaxy, Wynn Macau Ltd., and Melco Resorts & Entertainment Ltd.) look set to retain dominance. And Sands is expected to see higher EBITDA (earnings before interest, tax, depreciation and amortization), rising by “at least 11%” next year compared to 2017.

Las Vegas Sands’ share price has risen by 35% so far this year

graph1221 macau 2

SOURCE: Yahoo Finance

None of this is to suggest Macau is impervious to wider considerations. A slow down in China, further crackdowns from Beijing, or unexpected difficulties in the tourist sector could all present a barrier to the region’s performance. However, at present, none of those things look to be on the horizon. And that means lady luck is – for the moment – smiling on Macau.


Dominion holds Las Vegas Sands in its Global Trends Luxury Fund.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.