SkyCity Entertainment’s earnings are likely to make a solid recovery in the fiscal 2021 year, ending in June, to at least 75 percent of 2019 levels, Standard & Poor’s said in a note.
In terms of EBITDA, fiscal 2021 is likely to exceed 2019 levels, it said. The firm sees near normal earnings in fiscal 2022.
“This recovery will be supported by strong gaming revenue and a recovery in non-gaming revenue, primarily at the group’s Auckland and Adelaide assets,” the not said. “Management continues to target a 2.5 x net debt-to-EBITDA ratio as part of the company’s capital allocation framework and commitment to an investment grade rating.”
Macau's narrow economic base and its high concentration of tourists from China restrain the city's credit rating and have contributed to historically high levels of gross domestic product volatility, Fitch Ratings says.
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.