Macau Mass Gross Gaming Revenue Recovers to 94 pct of 2019 Levels – JP Morgan

MACAU, SAR (September 1, 2023) — Macau’s mass gross gaming revenue (GGR) demonstrated a significant recovery in August, reaching 93 to 94 percent of pre-Covid levels, estimated JP Morgan analysts following the release of a casino revenue result for August by the city’s gaming watchdog.

Macau News Agency reports that according to the analysts’ Friday update, this indicates that the premium mass segment has rebounded to 110 per cent of 2019 levels, and the grind or base mass segment has recovered to 75 to 80 per cent of pre-Covid levels.

In August, Macau’s casinos achieved their highest monthly revenue since the easing of Covid restrictions earlier this year, generating a staggering MOP17.213 billion (US$2.12 billion).

JP Morgan analysts DS Kim, Mufan Shi, and Selina Li noted in their report that this figure implies a daily run-rate of MOP555 million, representing a recovery to 71 percent of pre-Covid levels.

The print exceeded the sell-side consensus of MOP17 billion, and considering the 10 percent decline in Macau shares during August, it was also satisfactory compared to the buy-side’s expectations.

The brokerage said that September’s GGR is not expected to impress, primarily due to the seasonality of this month as a transitional period between the summer holidays and the October Golden Week.

Additionally, the looming impact of super Typhoon Saola, forecast to hit Macau over the weekend, adds further uncertainty to the situation.

Despite the lack of near-term catalysts, JP Morgan analysts maintain a positive stance on the Macau gaming sector.

They particularly emphasised the potential for investors to ‘play the long game’ and buy-and-hold for over 12 months.”

SOURCE: Macau News Agency (MNA).