[ET Net News Agency, 18 February 2020] Casinos are allowed to resume operations from 20
February, as indicated in the original 15-day suspension schedule.
J.P. Morgan said the re-opening news could provide some relief on sentiment, as many
observers had thought a further suspension was possible. That said, the research house
expects the news to have little impact on fundamentals, as the business will likely remain
extremely slow anyway amidst the restrictions on visas and transportation.
JPM said most Chinese players are probably unable or unwilling to travel at this point,
and it expects February GGR to decline over 80%.
It also sees a possibility that the opening of new properties (e.g., SJM's Grand Lisboa
Palace, Galaxy's Phase III, Sands'Londoner) may be pushed out by a couple of months versus
prior schedules.
JPM thinks that meaningful disruptions will stay at least for another month or so and
that March GGR could drop well over 50%. This suggests 1Q GGR could see 50% declines,
which in turn would reduce annual GGR by 12% and annual EBITDA by 20%. (KL)