Fitch estimates Singapore, Malaysia 2023 recovery, Macau revenues remain a shadow of its former self
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Loading... - Nicholas Chu
- 10 Feb 2023
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Fitch expects Singapore and Malaysia to reach pre-pandemic levels by 2023, whereas Macau’s outlook remains challenging, the firm’s Global Gaming Outlook from senior director Colin Mansfield, finds.
Fitch expects gaming revenues in Singapore and Malaysia to ramp up to around 80% of pre-pandemic levels in 2022, and then to around 95% in 2023. This follows a jump in revenues in both countries following the lifting of movement restrictions in April 2022.
In Singapore, the reopening of international travel from 2Q22 drew pent-up demand from across APAC. Fitch expects Singapore’s gaming and non-gaming demand to recover fully to 2019 levels in 2023, with upside potential if Chinese tourists return.
Gaming demand is already near 2019 levels despite overall visitation to Singapore only at around 50% of 2019, thanks to strong local demand. The healthy demand will help the two operators absorb slightly higher gaming taxes that come into effect in 2022 as part of their concession extensions in 2019.
Singapore’s fast recovery has also been supported by APAC customers’ limited ability to enter Macau.
In Malaysia, EBITDAR margins for Genting Malaysia, the country’s sole operator, were boosted by a pandemic-driven workforce cut. The company does not anticipate headcount to return to previous levels despite additional hiring. Fitch expects that this, along with a robust revenue recovery, will help GENM’s margins remain above 2019 levels from 2022. Read More…
