4Q Mass GGR to Reach 2019 Level, 2024 Mass Volume to Rise 15 pct from Pre-Covid Figure: S&P

MACAU, SAR (November 21, 2023) — S&P Global Ratings has forecasted that Macau’s mass gross gaming revenue (GGR) will in the fourth quarter reach the same level recorded in 2019, while 2024 mass GGR will exceed its 2019 level by about 5-15 per cent.

The Macau News Agency reported S&P analysts Melissa A Long and Rivka Gordon said in a recent industry report that in the third quarter of 2023, the city’s market-wide mass GGR had already recovered to 93 per cent of the figure reported in third-quarter 2019, while VIP GGR had recovered to 38 per cent of the pre-pandemic level.

Multiple gaming operators in Macau indicated that the mass volume during the National Day Golden Week surpassed the 2019 level, and the positive momentum had continued into November, according to the report.

The recovery outpaced previous expectations set by the agency in July, and its current base case assumes Macau’s mass GGR will be equal to the 2019 level in the fourth quarter.

Looking ahead, the analysts expect the region’s 2024 mass GGR will be 5-15 per cent stronger than in 2019, implying a year-on-year increase of 20-30 per cent.

S&P Global Ratings has attributed the robust recovery in Macau’s mass GGR to the premium segment. Furthermore, the report suggested that improvements in Macau’s visitor arrivals and a recovery in airlift capacity to Macau and Hong Kong will likely support a further expansion in mass GGR next year.

Meanwhile, the analysts expect the VIP volume to remain at the current levels roughly, as the casino operators are unlikely to significantly expand their junket VIP operations amid tightened regulations.

SOURCE; Macau News Agency (MNA).