(Original title: The upswing effect is not as good as expected! Hong Kong’s game stocks collectively collapsed, and Melco International Development fell more than 9%)
November 21 news from the Financial Associated Press (Editor Hu Jiarong)Today, gambling shares in the Hong Kong stock market fell collectively: -9.09%, 8.01%, 6.73%, 5.77%.
Note: performance of game titles
China’s Macau SAR recently held a series of major events such as the Macau Grand Prix and the Food Festival, which at one time aroused the attention of the market. Judging from past data, a number of activities have resulted in a substantial increase in the number of tourists arriving in Macau.
Take the Macao Grand Prix for example: This project is an important sports tourism brand project in Macao Special Administrative Region, it is also the world’s oldest street car race, it has a history of 69 years, and has never stop.
Macao attaches great importance to these businesses, and the market has paid more attention to them and has higher expectations. In addition, the Mainland has resumed e-Visa applications for individual travel to and from Macao, and the market is expected to help tourism recovery in the sector.
However, related reports recently pointed out that although many positive factors have boosted Macau’s tourism industry, passenger flow this month appears to be lower than expected. Macao’s tourism industry said on Friday (18) the maximum was estimated to be 20,000, which was lower than the same period last year. Among them, non-Guangdong tourists increased the most; the hotel occupancy rate was estimated to be around 60%, and the hotel occupancy rate during last year’s Grand Prix was 70% and eighty percent.
Gaming shares underperformed
In addition to lower-than-expected passenger flow, many game stocks performed poorly in the third quarter, including losses of Galaxy Entertainment (00027.HK) which increased year-on-year.
In Galaxy Entertainment’s third quarter, the company’s net revenue was HK$2 billion, down 52% year-on-year and 16% qoq. The company’s Adjusted EBITDA was a loss of HK$581 million, up from a loss of HK$384 million in the second quarter. This has, to some extent, compounded the market’s concerns.
Galaxy Entertainment said the severe outbreak caused the Macao SAR government to extend travel restrictions from Q2 to Q3, and even caused entertainment venues to shut down for 12 days in Q3, which affected the number of visitors, revenue and profits.
However, Lui Che, president of Galaxy Entertainment, said that smart endorsements will resume on the mainland from November 1, and tour groups visiting Macau are expected to resume soon. The deal is expected to boost visitor numbers and revenue in the market. Looking to the medium to long term, the Group remains confident in Macao’s future.
However, he also admitted that the recurrence of the new coronary pneumonia epidemic in the future could affect the company’s future financial performance.
