The trine Macau concessionaires controlled past US-based casino operators are not below pressure to take up dividend payments to their parent companies over the near-term, according to a major global ratings agency.
S&P Global Ratings manager of collective ratings Melissa Long and tie in theater director of collective ratings Aras Poon conducted a webinar earlier today inwards which they said MGM China, Sands Red China and Wynn Macau don’t want to imminently re-start dividends to their Las Vegas-based parent companies. Those are Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM) and Wynn Resorts (NASDAQ: WYNN).
We don’t really ascertain any pressure or want to upstream dividends from Macau to [the U.S.] parent companies,” observed Long. “In fact, we’ve made some assumptions around potential future tense dividend resuming inwards 2024, assuming hard currency rate of flow recovers inwards line of merchandise with our radix case forecasts. But that’s an supposal that we’re making and none of the operators feature spoken nigh resuming dividends…from Macau.”
The commentary from the S&P analysts arrived as their counterparts at JPMorgan forecast that Macau cassino operators testament potential bring forth at to the lowest degree $2 one thousand million inwards gross gaming revenue (GGR) this month, topping the totals posted inwards March and April spell pacing for a unexampled post-pandemic high.
US Macau Parents Don’t Need Dividends
Prior to the coronavirus pandemic, MGM China, Sands mainland China and Wynn Macau paid dividends to their US-based parents, delivering an important, becalm germ of cash to the absolute majority owners.
Those payouts were scrapped to maintain cash in amid the world-wide health crisis. Today, Macau operators are focusing on generating hard cash flowing and rehabilitating counterbalance sheets as the special administrative region’s (SAR) gaming manufacture rebounds from a multi-year slump.
Specific to MGM, Sands and Wynn, the well(p) intelligence is that none of those operators is in dire want of cash in from their Macau subsidiaries. Buoyed by strength at their Las Vegas Strip venues, MGM and Wynn and generating hard cash while Marina Bay Sands inwards Republic of Singapore is supporting Sands’ firming counterbalance sheet. S&P’s long also highlighted the operators’ various domesticated and international enlargement opportunities as potentiality long-term drivers.
“Sands with New House of York and Singapore; MGM with Nippon and New York; and Wynn inwards add-on to the New York cassino possibility… got an enlargement in Beantown [Massachusetts] and is pursuing an integrated resort development inwards the UAE,” said the analyst.
US Dividend Outlook Still Not Great
Among the aforementioned trio, Wynn is the only when dividend remunerator of note, having announced earliest this month it will before long restart its every quarter payout at 25 cents a share.
MGM pays a meagre yearbook dividend of jus a centime share followers a pandemic-induced rationalise inwards 2020. However, that manipulator has been a important purchaser of its proprietor caudex o'er the past duo of years.
That leaves Las Vegas Sands. Once the dividend pet of the gaming industry, its payout was suspended inward 2020. Following a latterly amended arrangement with creditors, it is unlikely LVS testament re-start its dividend prior to 2025.
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