Coronavirus may impact gaming firms exposed to AsiaPac
Published on 30 Jan 2020. | Source: thestar.com.my
KUALA LUMPUR: The Wuhan Coronavirus outbreak will negatively affect the cash flow of gaming and lodging companies exposed to the Asia-Pacific region, especially casinos in Macau and markets which rely on visitors from China.
An S&P Global Ratings report published on Thursday pointed out companies likely to be the most negatively affected by the virus are gaming companies that derive a large percentage of their cash flow from casinos located in Macau and other Asia-Pacific gaming markets reliant on Chinese visitation.
The outbreak will also adversely impact lodging companies that operate a material percentage of their rooms in China and the greater Asia-Pacific region, though to a lesser extent, according to the report.
"Macau is the most exposed gaming market to the spread of the coronavirus," says Emile Courtney, an analyst at S&P Global Ratings.
"Other gaming markets in the Asia-Pacific region, such as Singapore, Cambodia, the Philippines, and Australia, also heavily rely on Chinese visitation and will experience some cash flow disruption.
“For example, Singapore derives about 20% of its total tourist visitation from mainland China."
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