Macau mass gaming market likely to steadily improve – Asia News

Macau’s mass-market gross gaming revenue (GGR) has recovered to slightly below 2019 levels, while those in the VIP segment have rebounded to 35% of pre-pandemic levels, according to the Deutsche Bank brokerage.

In a recent report, analysts Carlo Santarelli, Steven Pizzella and Alfonso Straffon noted that Macau’s visitation trajectory had shown improvement consistent with package tour volumes also on the rise.

As a result, the mass gaming market appears to have stabilized, and a further sequential improvement is expected in the coming months.

Analysts say concerns about Macau’s recovery trajectory may have been misguided and warn against placing too much weight on short-term and relatively “insignificant” data.

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As for Las Vegas Sands (LVS), Deutsche Bank expects Macau’s recovery and growth prospects to serve as a differentiator and attractive factor for US consumer investors.

As a result, the mass gaming market appears to have stabilized, and a further sequential improvement is expected in the coming months.

Given the increase in competitive offerings on Cotai and the gradual increase in visitation, the report suggests that regaining its pre-pandemic mass gaming market share in the short to medium term could be a challenge for LVS.

“In the coming years, with the recent tower openings in Galaxy and Studio City, and the possible expansion of Galaxy capacity, we estimate that the number of LVS hotel rooms will represent approximately 40% of the Cotai market,” they state. the analysts.

Deutsche Bank’s updated model projects that EBITDA from the group’s properties in Macau will reach 2019 levels in 2025, and that Macau margins will exceed 2019 levels in 2024.

Article republished within the framework of an agreement with Macau Business to share content. Link to the original article: https://www.macaubusiness.com/macaus-mass-gaming-market-likely-to-improve-steadily-deutsche-bank/