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Covid-19 taught Macao’s casinos to keep their costs down and they plan to keep it that way

A report by JP Morgan says the casinos’ ability to run tighter operations is going to significantly boost profits in the coming years.

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A report by JP Morgan says the casinos’ ability to run tighter operations is going to significantly boost profits in the coming years.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

UPDATED: 22 Dec 2023, 12:28 am

The Covid-19 pandemic taught Macao’s casinos to keep their running costs down and that habit won’t change as the territory embarks on its economic recovery.

That’s the conclusion of a report released Tuesday by JP Morgan and cited by gaming news portal GGR Asia.

The upshot? Casinos can expect a boost in profits in the coming years, with operating costs averaging at 10 percent lower than pre-pandemic levels.

[See more: GGR at Macao’s casinos increases 33.1 percent year on year]

That percentage, analysts say, “may not seem huge on the surface, but this is actually very meaningful” because business is expected to surge, with capacity “20-percent-plus higher in 2024 versus 2019, based on the number of casino hotel rooms”.

The analysts conclude that earnings will “recover to about 100 percent to 110 percent in 2024-2025 versus 2019”.

Galaxy Entertainment Group will be adding 450 more rooms this year, GGR Asia says, while Melco is expected to add 650 extra rooms and SJM Holdings 319.

 

UPDATED: 22 Dec 2023, 12:28 am

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