Securities firm JPMorgan Securities said it cut its estimate of real estate-level adjusted earnings for the third quarter before casino developer Las Vegas Sands interest, taxation, depreciation, amortization and rent (EBITDAR) for its Macau operations by 4.3%.
Las Vegas Sands, headquartered in the U.S., is the parent of Sands China Ltd., a Macau casino operator. The group operates a number of Kotai resorts, including Venice Macao, Paris Macao, and London Macao. It also operates a casino hotel, Sands Macao, on the peninsula.
“We are lowering our third quarter 2023 property level EBITDA estimate to $601 million from $628 million (consensus is $629 million) primarily to account for the typhoon/weather impact,” JP Morgan securities analysts Joseph Greff, Ryan Lambert and Samuel Nielsen said in a note Thursday.
Typhoon Saola raised the storm signal to No. 10, the highest warning sign for a tropical storm, by the Macau Meteorological Administration on Sept. 2. The bad weather caused Macau’s game venues to temporarily close for about nine hours as a precaution and disrupted traffic to and from Macau. 온라인바둑이
Macao’s market-wide casino gross gaming revenue badugisitenetreached MOP4.3 billion ($530 million) in the first 10 days of September, according to analysts’ estimates.
In a note on Thursday, the JPMorgan Securities team said, “Now we expect the market-wide GGR to be MOP14 billion (down 18% month-on-month) in September, MOP48 billion (up 5% quarter-on-quarter) in Q3 2023, and Las Vegas Sands to achieve market share similar to Q2 2023.”
“We are also taking a more conservative approach to Macau EBITDA forecast for the fourth quarter of 2023, which we expect to decline to $670 million from $727 million previously,” the analysts said, referring to Las Vegas Sands’ Macau business.
They added: “We expect real estate-level EBITDA to be $2.9 billion in 2024, down from $3.1 billion before, given lower standards and much less aggressive margin assumptions in 2023.”
The broker also said operating estimates for Singapore’s Las Vegas Sands, which operates Marina Bay Sands Casino Resort, “have not changed” in the second half of this year and in 2024.
Sands China hit adjusted real estate EBITDA of $541 million in the second quarter of 2023. At Marina Bay Sands, adjusted real estate EBITDA for the quarter reached $432 million, up 35.4% year-over-year.