Gaming stocks listed on the Hong Kong stock exchange took a dip today, apparently partly because of bearish comments by senior executives of Melco Resorts and Entertainment on their earnings conference call yesterday.
In mid-afternoon trading, most of the six listed gaming operators saw their stocks down, by between 2%-3%.
When asked about the outlook for revenues in 2020, Melco’s Chairman and CEO, Lawrence Ho, said: “We anticipate Macau to be very, very quiet for quite a long time.”
His words were echoed by the company’s COO of Macau Resorts, David Sisk, who said the coronavirus outbreak would impact revenues “in a great way,” adding that it was likely going to be “challenging for the next four to six months.”
Studio City President Geoff Andres, added: “In the scenario that David just painted, it is certainly possible we could have loss-making days in the casino, even with the casino open.”
This was hardly surprising, the executives added, pointing out that Melco was not the only one facing this scenario. “It’s just going to take some time given the safety protocols that we have in place,” Sisk said.
Gaming stocks hit by Melco comments