Brokerage Firm Expects Macau 2024 GGR to Hit MOP239.7 bln Amid Increased Visitation

MACAU, SAR (June 13, 2024) — Brokerage firm CLSA has revised its 2024 gross gaming revenue (GGR) forecast for Macau by 2-3 per cent to US$29.8 billion (MOP239.7 billion), as visitation to the city is expected to go higher driven by robust demand and policy support.

The Macau News Agency (MNA) reports that in a recent report, analysts Jeffrey Kiang and Leo Pan highlighted that May’s strong GGR reaffirmed that demand for gaming in Macau remained intact, although the overall GGR level remained 22 per cent below the 2019 level.

“Macau remains the most alluring gaming destination for Chinese given its close proximity to China in every aspect. In particular, premium players are still showing up in Macau,” the analysts said.

CLSA believes that policies are ‘in an easing direction’, especially with the expansion of eligible Individual Visitation Scheme (IVS) cities, which is expected to attract an additional population of 45 million.

“Ongoing strong demand in the premium segment and policy support for visitation bodes well for Macau’s GGR, in our view,” the analysts added.

Based on strong demand and policy support for Macau, CLSA raised its GGR forecast for Macau in 2024 and 2025 by 2-3 per cent to US$29.8 billion and US$31.7 billion, respectively.

Driven by the higher GGR forecasts, the brokerage also raised its 2025 sector EBITDA forecast by 2 per cent to reach US$9.7 billion, surpassing pre-pandemic levels.

The report also highlighted the intensifying competition among concessionaires, as aggregate rebates and reinvestments in players increased by 10 per cent quarter-on-quarter in the first quarter of 2024 to US$1.267 billion, faster than the corresponding GGR growth of 6 per cent.

“We continue to expect intense rivalry ahead as such investments are essential to drive business(GGR), in our view.”

Among the six gaming concessionaires in Macau, Galaxy is expected to regain market share, reaching 18.2 per cent by the end of this year, driven by a shake-up of its salesforce and a reconfiguration of its gaming floor in Galaxy Macau.

SOURCE: Macau News Agency.