Analysts expect three of Macau’s casino business firms to achieve positive sequential EBITDA growth for the first period of the year. Morgan Stanley analysts Praveen K. Choudhary and Katherine Sun think Sands China, SJM Holdings and Melco Crown Entertainment will all post rises with Sands to see quarter-on-quarter EBITDA increase 14 percent to US$496 million. This exceeds their expectations for the other two firms with SJM expected to post a 4 percent rise to HK$1,858 million and Melco Crown up 3 percent to US$238 million. The enclave’s other operators “could see sequential” decline according to the same investor’s note.
Strong rumours are circulating that Melco Crown will be adding to their Macau Studio City project in the near future. Approximately 200 workers have been hired according to Business Daily. Even though worker accommodation has been built on site a spokesperson for Melco International Development Ltd said construction has not restarted. It’s still unclear whether the development will include a casino with the government and Melco Crown both conflicting each other. The same news report suggests the development won’t be viable unless a casino is included.
Macau is setting up a representative office in Taiwan along with Hong Kong. The two offices, which will formally open in May, are being set up to administer certain issues such as culture, education, travel, technology, trade and medical exchanges between the two regions. Focus Taiwan News Channel confirmed the offices, stating: “Hong Kong and the Macau SARs have been preparing for the set-up of such offices since last December. Hong Kong has eight officials in Taiwan, housed in temporary offices, while Macau has four.”
