Changes in Hong Kong stocks | Gaming stocks continued their recent decline, Macau passenger traffic declined after the National Day holiday, and industry EBITDA may have declined in the third quarter

The Zhitong Finance App learned that gaming stocks continued their recent decline. As of press release, Galaxy Entertainment (00027) fell 4.33% to HK$34.25; MGM China (02282) fell 3.28% to HK$10.04; Wynn Macau (01128) fell 2.56% to HK$6.09; and Sands China (01928) fell 2.47% to HK$18.16.

According to a research report published by HSBC, Macau's gambling revenue on the first 13 days of October was MOP 11 billion, which means that the average daily gambling revenue for the past week was 643 million yuan, down 42% from week to week. The related performance was partly due to a decrease in passenger traffic after the October Golden Week holiday. The decline was consistent with a 40% weekly average drop in the second week of October after the National Day Golden Week in the past. The bank estimates that Macau's total monthly gaming revenue for October was between $21.4 billion and $22.3 billion, up 24% to 29% month-on-month, and reaching 81% to 84% of October 2019 levels.

Macquarie released a research report saying that due to a reduction in overall promotion activities and macroeconomic demand, Macau's third-quarter gaming revenue and gaming industry EBITDA forecasts were lowered by 5% and 8%, respectively. According to the Lyon Research Report, gaming stocks will start announcing the third quarter results at the end of October. Due to the 1.5% month-on-month decline in gaming revenue in the third quarter in Macau and continued pressure on profit margins, the industry's Ebitda is forecast to fall 10% month-on-month to US$1,748 million.