A senior analyst at JPMorgan Chase & Company, a global investment firm, reportedly predicted that at least some of Macau's casino operators would be able to make a positive profit in the fourth quarter due to a surge in mainland visits.

The prediction by analyst DS Kim comes after Macau announced plans to restore package travel and local eVISA plans soon after discussions with China's central government, according to a Sunday report from Inside Asian Gaming. The sources detailed that such measures are expected to take place in November after both measures were suspended in January 2020 due to concerns over the coronavirus pandemic.

Flush figures:

According to reports, an increase in visits to Macau could allow Macau's related fourth-quarter mass market gross gaming revenue to recover to 35% of pre-pandemic levels before hitting 85% by the end of next year. An experienced financial expert also reportedly explained that this could allow some of the region's six casino operators to return to profitability through positive fourth-quarter earnings before interest, taxes, depreciation and amortization.

According to reports, he read Kim's affidavit…

"Most businesses can positively convert their earnings before interest, taxes, depreciation and amortization when mass market gross gaming revenue reaches about 30% to 35% of pre-pandemic levels, indicating that some companies may start making positive earnings in the fourth quarter."

Exceptions:

However, Kim reportedly warned that this optimism may not apply due to the expected new operating costs associated with the recently opened Grand Lisboa Palace facility by Macau casino giant SJM Holdings Limited. JPMorgan Chase and the company reportedly described the company's financial situation as "somewhat concerning" due to possible refinancing issues in April and the expected closure of parts of its satellite casinos soon.

In Kim's statement...It was said that it was written...

"With the exception of Galaxy Entertainment Group Limited, which is capable of outputting plus pre-cash flows with less than 30% recovery thanks to net cash, and SJM Holdings Limited, which is expected to require near-full recovery to recover the operating costs of Grand Lisboa Palace and satellite casinos, will be able to achieve a pre-cash flow break-even at approximately 50% to 60% of total game revenue recovery on the mass market. Therefore, we will no longer need to worry about 'liquidity runway' as all operators except SJM Holdings Limited are expected to be pre-cash flow-plus by Q2 2023."