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Macau 2024 GGR May Be 80pct At 2019 Level

Fitch Ratings forecasts Macau’s economic growth rate of about “15 percent” year-over-year in 2024, assuming Macau’s casino gross gaming revenue (GGR) will recover to 79.5 percent in 2019, compared with 62.6 percent of pre-pandemic levels in 2023.

This follows the action announced on Friday. The agency confirmed Macau’s long-term foreign currency issuer default rating (IDR) as “AA” with a stable outlook.

The rating for Macau takes into account that Macau’s public and external finances are “exceptionally strong” and that it has demonstrated fiscal prudence.

Fitch Ratings further observed: “The rating also reflects the territory’s narrow economic base, the high concentration of gaming tourists in mainland China (‘A+/stable’), and vulnerability to policy changes that could affect China’s treatment of gaming tourism.”

Mainland China has long been Macau’s most important tourist source. This month, the number of Chinese cities increased from 49 to 51 when the Chinese cities of Xi’an and Qingdao were added to the mainland list to participate in the IVS, an outbound visa scheme for travel to Macau and Hong Kong.

“We expect Macau’s recovery momentum to be supported by the expansion of individual visit plans targeting more mainland Chinese cities and the government’s push for various mega-events to meet changing Chinese consumer preferences,” Fitch said in a commentary on Friday.

However, a sharp slowdown in China is a major downside risk to Macau’s economic and game recovery prospects.”

Growth in the city’s inbound tourism business, along with non-game investment commitments following a 10-year concession period by Macau casino operators, is expected to strengthen the city’s economic and gaming outlook, according to the ratings agency.

“We expect Macau’s budget to turn from a modest deficit of 0.6% in 2023 to a surplus of 3.8% of GDP in 2024 for the first time since 2020,” Fitch also said in an update on Friday.

Macau’s government expects a fiscal surplus in 2024, with the city’s casino GGR estimated to reach an annual MOP of $216 billion ($26.8 billion).

“The [Macao] government expects a slight surplus of 0.3% in 2024, but we expect gaming revenue to be 7.6% higher than budget assumptions and we believe spending will remain budget short as in previous years,” Fitch said.

Macau is the “only country” without outstanding government debt in Fitch’s global national portfolio. As of the end of 2023, Macau’s fiscal reserves were MOP580 billion.

“Fiscal buffers in the region, currently around six times the projected 2024 spending, are expected to remain substantial and maintain key credit strength over the medium term, assuming a sustained fiscal surplus,” the ratings agency said.

BY: 바카라사이트윈

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Far East Consortium Casino Biz Europe Near Listing in Hong Kong

Proposals for the Hong Kong division and individual listing of European gaming and leisure company Palacino Holdings, a subsidiary of Far East Consortium International, a Hong Kong-listed real estate developer, have been approved in principle by the Hong Kong Stock Exchange.

So-called post-hearing information pack for Palasino Holdings – a near-final draft of the listing document was released on Thursday.

Palasino Holdings operates three land casinos in the Czech Republic, one of which is located within an integrated resort. The athletes at the venue are mostly from neighboring Austria and Germany, according to the information pack. The company also operates three hotels in Germany and one in Austria.

Palacino Holdings also has a license issued by the Malta Gaming Authority, which allows it to operate its online gaming business in the region, the filing said.

The company plans to “soft-launch” online games to players over the age of 18 based in Malta during the first half of this year, the information pack said. The company aims to expand its online gaming business to regulated countries, including “Central Europe”.

The Far East consortium announced in late September that it had proposed a split and separate listing of Palacino Holdings on the Hong Kong Exchange’s motherboard.

Completing the phase would provide Palacino with a “separate financing platform,” better reflect value and improve “operational and financial transparency,” the Far East consortium said in a September commentary.

Palasino Holdings’ net income for the fiscal year ended March 31, 2023 was HK$44.2 million (US$5.65 million), compared to HK$40.1 million in the prior fiscal year.

Gaming has been the main source of revenue for Palasino Holdings. The segment accounted for 70% of total revenue in the past three fiscal years ending March 31 and the six months to September 30, 2023.

The Far East Consortium, along with Hong Kong-based Chow Tai Fook Group, is a strategic partner and financial supporter of Australian casino operator The Star Entertainment Group Ltd. It is working on a new casino resort project in Queenswarp, located in Brisbane, the capital of Queensland, Australia.

BY: 경마사이트프로