Macau’s 1Q24 EBITDA could come in below the 6% quarter-on-quarter GGR growth of 6%, suggesting operators are still heavily focused on deleveraging, according to investment bank Morgan Stanley.
In a note previewing the upcoming earnings season, to be kicked off by Sands China parent Las Vegas Sands later this month, Morgan Stanley analysts Praveen Choudhary, Gareth Leung and Stephen Grambling said they believe industry corporate EBITDA to be around 5% higher quarter-on-quarter at $1.9 billion – putting it at 81% of 1Q19 levels.
However, while some operators have confirmed that their short-term focus post-pandemic was deleveraging, the analysts said they expect to see smaller operating leverage benefits in Q1 “due to wage increase and some companies increasing promotions to attract customers.”
