Macau 16Q2 earnings to dip to five-year low

Macau’s six casino operators will begin reporting Q2 results later this month, with analysts expecting a mixed bag. Though operators say they are seeing signs of stabilization in the market, that is unlikely to be reflected in the bottom line, at least for now. The general consensus is that revenues and EBITDA will fall quarter over quarter (QoQ) to the lowest in the past five years. Decline is expected to be driven by a significant dip in VIP business, but contributions from the mass market are also thought to be down. A number of factors are at play – from the opening of Shanghai Disneyland to the European Football Championship – but despite the rough waters analysts remain confident in the long-term potential of the market.   According to a research note issued by Morgan Stanley, total GGR for 2Q16 will be around $6.5 billion, down 8 percent QoQ and 9 percent...

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