Moody’s Investors Service has revised its forecast for the US gaming industry and now projects EBITDA to fall 60% to 70% for the 12 months through March 2021.
Moody’s expects earnings will begin to improve in the second half of 2020, putting annual EBITDA on track for a 20% to 40% drop from 2019.
The company wrote: “Moody's believes customers will be slow to return, and it will likely take some time before companies will be able to ramp back up to normal business levels.
“Restaurants, bars and theaters in the casinos will likely operate at a more limited capacity once mandatory casino closures and stay at- home orders are lifted because of continued social distancing practices to prevent a renewed outbreak.”
Last month, Moody’s revised its industry outlook to negative with an EBITDA decline of 10% to 20% after a previous call for 3.5% growth in 2020.
