Kingston Financial Group – which operates two satellite casinos in Macau – has issued a profit warning for the year ended 31 March 2021, saying that it expects revenue to drop 90% year-on-year.
Though the business is also involved in non-gaming areas such as investment banking, its steep revenue decline was mostly due to its Macau hotel and gaming operations, as low visitor numbers to the territory hindered its ability to bring in revenue.
“After the virus outbreak, the number of tourists visiting Macau dropped sharply,” it said.
Macau faced strict travel restrictions for almost all of Kingston’s financial year, which led to low revenue for all operators in the territory. The territory lifted its last travel restrictions for mainland China on 23 February.
In each of the 12 months from April 2020 to March 2021, total gambling revenue in Macau was less than MOP10bn ($1.25bn/€1.05bn/£898m) and was down more than 65% from 2019 levels. For the 2020 calendar year, revenue was down 79.3% ..