Macau’s massive gross gaming revenue (GGR) demonstrated a significant recovery in August, reaching 93 to 94 percent of pre-Covid levels, JP Morgan analysts estimated following the release of a casino revenue result. for August by the city’s gambling control body.
According to Friday’s update from analysts, this indicates that the premium mass segment has rebounded to 110 percent of 2019 levels, and the grind or base mass segment has rebounded to 75 to 80 percent of levels. pre-Covid levels.
In August, Macau’s casinos achieved their highest monthly revenue since the relaxation of Covid restrictions earlier this year, generating a staggering MOP 17.213 million (USD 2.12 billion).
JP Morgan analysts DS Kim, Mufan Shi and Selina Li noted in their report that this figure implies a daily take of MOP 555 million, representing a 71% recovery from pre-Covid levels.
The figure beat the sellers’ consensus of MOP 17bn and, considering the 10% drop in Macau shares in August, was also satisfactory compared to buyers’ expectations.
The number of daily visits from Macao in August could reach 100,000
The brokerage noted that September grosses are not expected to impress, mainly due to the seasonality of this month as a transition period between the summer holidays and October’s Golden Week.
The figure beat the sellers’ consensus of MOP 17 billion and, taking into account the 10% drop in Macau shares in August
In addition, the imminent impact of Typhoon Saola, which is expected to hit Macao over the weekend, adds further uncertainty to the situation.
Despite the lack of near-term catalysts, JP Morgan analysts remain positive on Macau’s gaming sector.
They placed particular emphasis on the possibility for investors to “play the long term” and buy and hold for more than 12 months.”
Source: https://reporteasia.com/economia/turismo/2023/09/03/ingresos-brutos-macao-recuperan-niveles-2019/
