Resorts forecasts hit by Macau casino earnings - 24th
text advertisement here from as little as $100USD
per 12 months
Packer speaks tio the media ahead of Studio Citys
Packers Crown Resorts has had its earnings forecasts
trimmed on the back of a slower-than-expected ramp
up of its new Macau casino.
Sachs revised its earnings-per-share estimates for
Crown (CWN) after its Hong Kong gaming team reduced
the earnings outlook for Melco Crown Entertainment,
in which Crown Resorts has a 34 per cent stake.
Packer and Melco Crowns Lawrence Ho opened the
$US3.2bn Studio City casino resort in Macau last month
amid a slump in the Asian gaming region.
Sachs gaming team had lowered their earnings
forecasts for Melco Crown on the back of a slower-than-expected
ramp up of Studio City and have warned that if the
current run rate persists, it could present downside
risks to consensus earnings forecasts.
banks gaming analysts, who recently hosted a
gaming panel at Goldman Sachs China conference,
also noted that recent comments from Li Gang, director
of Chinese liaison office in Macau, signalled that
the government appreciated the importance of the gaming
industry and was more open to issuing new or relaxing
existing policy measures to support the market.
is consistent with other recent commentary, and suggests
we may be nearing the end of what has been a protracted
downgrade cycle, Goldman Sachs analyst
Adam Alexander said in a note on Crown Resorts.
Alexander added that despite the downgrades, the bank
retained its buy rating on Crown Resorts
as it believed that the risk/reward remained favourable.
has a strong domestic franchise, and although uncertainty
in Macau continues, we believe it is more than reflected
in the share price, he said.