Sands China drew $201 million<\/a> on a credit revolver, buying it time to support operations through at least the end of this year.<\/p>\nCash Burn Concerns<\/h2>\n
Morgan Stanley forecasts Macau’s second-quarter gross gaming revenue (GGR) of just $1.1 billion, which would mark the third-worst quarter since 2020.<\/p>\n
\u201cWe estimate 2Q22 [Corporate earnings before interest, taxes, depreciation and amortization (EBITDA)] for Macau at [a loss of US$600 million to US$700 million] versus [a loss of USS$9 million] in 1Q22. 2Q free cash flow equity (after development Capex) could be negative US$1.6 billion to US$1.7 billion for the industry versus a US$1 billion loss in 1Q22,\u201d adds the bank.<\/p>\n
As such, cash burn rates are amplified. While the Morgan Stanley analysts note Wynn Macau has the cash to survive at least 38 months, the research firm estimates the operator is spending $2 million a day in the current quarter, or 82% above first-quarter levels.<\/p>\n
MGM China Ltd, Sands China, and SJM Holdings have less than a year\u2019s worth of cash, according to Morgan Stanley. The bank\u2019s report didn\u2019t mention MGM Resorts International (NYSE:MGM) potentially providing capital to MGM China. The US-based parent owns about 56% of the Macau unit.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Wynn Resorts (NASDAQ:WYNN) extending a $500 million credit revolver to its Wynn Macau unit is a negative sign. But other concessionaires in the world\u2019s largest casino center could follow, according to Morgan Stanley analysts. The bank says the move by Wynn implies Macau operators are encountering headwinds in obtaining capital from banks — a potentially […]<\/p>\n","protected":false},"author":46,"featured_media":217386,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\n
Wynn Macau Parent Financing Ominous Sign, Says Bank<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n