CICC lowered its forecast for total gambling revenue in 2024 and 2025 to USD 28.6 billion and USD 29.7 billion, respectively.
According to the Zhitong Finance and Economics app, CICC released a research report stating that it has lowered its EBITDA forecasts for the casino industry for fiscal years 2024 and 2025 by 8% and 6%, respectively, and lowered its target price for Macau casino stocks. MGM China (02282) and Galaxy Entertainment (00027) are the preferred choices. The bank expects EBITDA for the Macau casino industry to decline 4.7% sequentially in the second quarter, with total gambling revenue (GGR) falling 1.6% sequentially.
The report states that despite the sluggish start to total gambling revenue in July and the impact of government crackdown on illegal exchange activity on investor sentiment, stable assets and fair competition should help gambling companies address these adverse factors. The bank lowered its forecast for total gambling revenue in 2024 and 2025 by 3% and 5.3%, respectively, to USD 28.6 billion and USD 29.7 billion.