Asia-Pacific Gaming Earning Feel COVID-19 Rumple, Falling 70 Percent
The COVID-19 pandemic has been pressing down many businesses throughout the world and Asia-Pacific Gaming has been no exception. The headwinds of the pandemic have hit hard on the earnings before interest, taxes, depreciation as well as depreciation not leaving out amortization. (EBTIDA). This has led to the gaming firm to slide down to as much as 70% according to the Moody’s Investors Service.
Referencing, international travelling ban, business closures along with the implementation of social distance measures. The research organisation gave an indication that big gaming companies such as Macau and Singapore will face a huge depression in 2020.
In addition, there is a prediction that there might be a modest rebound next year. There are approximately nine gaming firms with Asia-Pacific footprints. These include; Las Vegas Sands (NYSE:LVS), MGM Resorts International along with Wynn Resorts.
“We assume the earnings recovery will start in the second half of 2020, following a very weak first half,” said the rating agency. “Still, earnings in 2021 will be lower than in previous years. Downside risks to our forecasts are significant, particularly if the pandemic is not contained and lockdowns have to be reinstated.”
Impact on Gaming Restrictions
All of the Asia-Pacific Gaming market that includes Australia, Macau, Malaysia and Singapore put in place travel restrictions. These precincts led to casino shutdown amongst other businesses with many of the protocols still in place. All this in a bid to throttle their hopes of a near-term recovery earning mainly for the tourist dependant industry.
“The ensuing decline in tourism culminated in the suspension of gaming operations, as governments implemented measures to contain the spread of the coronavirus,” said Moody’s.
“Slower economic growth will also hurt revenue. The highly discretionary and nonessential nature of consumer spending on casino gaming makes the sector extremely vulnerable to changes in regional and domestic economic conditions.”
The global coronavirus pandemic has claimed many lives in various parts of the world. With China being, the most affected. China is a major source of gambling activities. At the same time, it has reported close to 300 new cases since June 11 in the capital city of Beijing.
There is a massive slump in land casinos’ due to COVID-19. Many casinos in Australia and other countries that are in Asia-Pacific have felt the heat regardless. Gaming restrictions have been imposed on these casinos in a bid to combat the spread of the coronavirus.
On that note, it is a privilege to note that online casinos are still available for you to play for real money. And this is the best way of gaming whilst limiting the spread of the coronavirus.