Analysts are warning that increasing competition from rivals will likely stifle any uplift for Melco Crown in Macau.
While the UBS team has predicted a potential demand recovery in Macau in the near term, the brokerage also predicts Melco Crown’s rivals — Wynn Macau, MGM China and Galaxy Entertainment will likely to outperform the sector, while Melco Crown itself was likely to underperform.
“Melco Crown Entertainment will face strong competitive pressure in Cotai, particularly in the premium mass segment,” said the brokerage.
In a note from UBS analyst Matt Ryan, quoted by The Australian, equity accounted contribution from Melco Crown would fall to $55.5 million this year. The contribution was $122.3 million in 2015 and $218.7 million in 2014.