Four out of the six casino operators in Macao are likely to pay out dividends for this year, according to an HSBC Global Research report quoted by various news outlets.
Galaxy, MGM China, Wynn Macau and Sands China shareholders are expected to benefit, although pundits predict that Melco and SJM will not be making any such payments as they seek to leverage their balance sheets.
The report noted that the demand for gambling in Macao continued to be strong and that the concessionaires “remain committed to shareholder returns.”
In their assessment, HSBC analysts stated that MGM China and Galaxy were both seeing robust growth across their business portfolios and that their VIP gaming had also experienced conspicuous growth.
The research firm, however, said that stronger competition in the industry could affect the profits of MGM and Wynn in relation to the premium mass market, although it added that this may be offset “by operating leverage as top lines continue to grow.”
[See more: Sands China shows a sharp revenue increase in its first quarter results]
Currently, there are three gaming concessionaires making dividend payments for the 2023 financial year – Galaxy, MGM and Wynn.
Earlier this year, Galaxy had announced it would be paying a special dividend of HK$0.30 per share, while MGM and Wynn noted that their 2023 dividends would total HK$0.243 and HK$0.075 per share.
The analysis by HSBC is in stark contrast to an earlier one made by the financial firm Jefferies, which was cited by gaming specialist publication GGR Asia. According to the company’s analyst Andrew Lee, Galaxy was to be the only operator to make dividend payments in 2024 due to its “strong financial position.”
Similarly, the HSBC assessment is at odds with Fitch Ratings’ forecast this February that Sands China would be unable to make dividends payouts until 2026.
