The fall of Macau's GGR will not affect the Galaxy and Sands China

Analysts from the Sanford C. Bernstein brokerage company revised their ratings for both the Galaxy Entertainment Group and Sands China, based on current company ratings and forecasts for expanding their capabilities.

Macau’s gross game revenue is expected to decline significantly over the next 12 months. GGR grew by 18% from 2017 to 2018, but over the next year an increase of only 3% is expected.

Analysts believe that, despite the decline in GGR growth, the overall picture for the Macau casino industry will remain positive.

According to forecasts, in the long run, the profit of Galaxy Entertainment Group, taking into account the development of the final stages of development of the Galaxy Macau, will not significantly decrease.

“Galaxy improves operations for the mass market in Galaxy Macau and StarWorld, while maintaining leadership in the VIP segment. A key factor in developing business and increasing margins will be improving operational capabilities and business structures,” - experts say.

According to analysts, the reconstruction of Sands Cotai Central and modernization of Parisian will help to increase the income of Sands China in the premium mass market segment. The long-term growth outlook (starting from 2020) is associated with the expansion of hotel room capacity and restructuring.

Recall that, in accordance with the revised law, which entered into force on January 1, all smoking rooms in Macau casinos must be approved by the authorities and meet high technological standards.

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