It’s rare that a 79.7% drop in revenue would be seen as a good thing. But that’s the case in Macau at the moment — mostly because that number isn’t 100%.
A 100% drop in revenue is what US casinos are staring down when April wraps due to a complete shutdown to help stop the spread of COVID-19. But Macau is in a different situation, offering a glimmer of hope to investors and casino-goers alike.
All eyes are on Macau as a preview of what might be in store for the United States.
The 79.7% drop in revenue in March is actually a good-news story, coming off an 87.8% drop in revenue in February. That month included a 15-day shutdown of all resorts.
That means the conditions in Macau are getting better in terms of revenue generation. And that means Macau won’t be a total loss on the balance sheets for casino operators there.
Still, the longer the shutdown in the United States lasts, the greater the worry for investors. Some prediction models reveal that Las Vegas Sands and Wynn Resorts each have enough money to pay their bills for less than two quarters. This number doesn’t take into account the $600 million Wynn Resorts recently raised, or the fact that the resorts don’t have as many expenses with the doors closed.
Both companies operate properties in Macau, so the success over there could help ease some of the pain caused by the shutdown of their properties in the United States.
