[ET Net News Agency, 17 September 2018] The Macau Government temporarily suspended
gaming operations for all 42 casinos effective from 11 p.m. on 15 September before Typhoon
Mangkhut hit Macau. Gaming operations have resumed from 8 a.m. on 17 September after the
review of the community conditions by the Civil Protection Operations Centre as the
typhoon passed.
Credit Suisse noted that all the casinos stopped their gaming operations for 33 hours.
From the research house's initial discussion with industry participants, damages to the
casino properties are very limited. Unlike last year, the electricity and water supply
to casinos are normal and the city generally didn't see major power outages like last
time. As such, Credit Suisse expects Macau and the casino business should recover much
faster this time around.
Assuming a roughly 8% impact (roughly 2 days of weekend and partially for Monday) due to
the shutting down of casino operations, Credit Suisse estimated that the GGR for September
should grow at 5-8%.
Overall, the research house thinks there would be around a 2-3% impact on the 3Q EBITDA.
That said, the Typhoon came in September (seasonally slower month) and the
stronger-than-expected mass GGR (+20-22% YoY in quarter-to-date for 3Q) so far should help
mitigate the
impact.
Looking ahead, Credit Suisse said October golden week bookings look strong. From its
check, the bookings started earlier and the industry participants are generally expecting
a stronger performance than last year. (KL)