According to a note released by investment bank Morgan Stanley, the net debt of Macau’s six casino operators (concessionaires) could reach US$25 billion (€23.3 billion) by the end of this year, and is on track to hit US$27 billion (€25.2 billion) by the end of 2023.
Debt grew from US5 billion in 2019 to US$20 billion in 2021
The bleak forecast is believed to be a direct result of the delayed recovery of the Macau casino industry due to the strict travel restrictions put in place by mainland China.
Macau Casino Debt to Hit $25 Billion by End of 2022 Macau Casino Debt to Hit $25 Billion by End of 2022Macau Casino Debt to Hit $25 Billion by End of 2022 Macau Casino Debt to Hit $25 Billion by End of 2022 Macau Casino Debt to Hit $25 Billion by End of 2022“If China’s travel easing gets delayed to 2H23, Macau’s net debt could rise another US$2 billion, to US$27 billion by end-2023, by our estimates. Mass revenue could be at 50% of 2019 only versus base case of 95%. Industry EV would be US$77 billion, implying 8x EV/EBITDA on 2024 [estimated] EBITDA.”
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.