Resorts World Las Vegas is expected to generate revenue of $350 million in 2022 and EBITDA of $82 million in its first full year after opening this summer, according to Nomura Research.
For 2023, the firm is estimating revenue of $477 million and EBITDA of $112 million, basing its model on more than 20 large Las Vegas strip casinos’ financials.
However, Nomura warns the new $4.3 billion resort will be a drag on net profit after tax in the initial post-Covid years due to the high costs.
For the group as a whole, Nomura says that Malaysian operations will get an EBITDA boost in 2022 due to vaccinations and the new theme park, while 2021 will be bump. Earnings in Singapore will plateau in the first half before travel bubbles.
UK operations will remain subdued until mid-May reopening and New York city will remain on a gradual improvement path to to an increase in machine counts.
The Bahamas and Catskills will remain loss making in the medium term and may ultimately need more capital injections.
China’s domestic travel was almost back to 2019 levels during the recent Ching Ming Festival and the pent-up demand to venture overseas once restrictions are relaxed remains intact, says Professor Wolfgang Arlt, CEO of the China Outbound Travel Research Institute (COTRI).
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.