James Packer’s Macau Casino Investment Backed by Goldman Sachs

While most other casino investors in Macau are going through tough times to retain customers, Crown Resorts has a shot in the arm by way of public support from its largest investor Goldman Sachs Asset Management. The firm has invested in a large casino christened Melco Crown at Macau, in partnership with Lawrence Ho who runs City of Dreams and is also planning to be a part of Studio City. While some investors have backed off from investments in Macau due to the government crackdown on corruption, Melco Crown still stands by its investment stating that it is a onetime investment and half of its total profits are contributed by this branch.

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Goldman Sachs supports James Packer

Goldman Sachs’ local head of Australian Equities has stated that though there is more volatility in the gambling market of Macau, it will stabilize within a few quarters and Melco Crown will witness long term growth. He further stated that Goldman Sachs has always been a long term investor and since inbound tourism in China is still at a nascent stage there is room for tremendous growth for Melco Crown which is a top class resort cum casino. As a regular investor in Crown group’s innovative business plans, Goldman Sachs is confident about long term profitability at Macau.

Financial Status of Melco Crown

The net revenues of Melco Crown fell drastically by 22 percent during initial quarter of 2015 shaking the investors as sales in both regular and VIP market segments. James Packer too admitted that the shakedown was worse than expected and profits have fallen more heavily than during early part of economic breakdown in 2008. But growing interest of inland tourists from China that are visiting the island with families to enjoy the luxuries of five star hotels, has broadened the clientele of resorts cum casinos in Macau like Melco Crown Resorts.