Casino revenues to hit 100% pre-Covid levels by October: JP Morgan

Gaming revenues are likely to hit 100% of pre-Covid levels by October as the first nine days of July recorded a robust recovery, according to JP Morgan.

In a note, JP Morgan analysts DS Kim and Mufan Shi stated that their weekly channel check shows that July 1 to 9 gross gaming revenues (GGR) have reached MOP4.8 billion, implying a daily run rate of MOP530 million.

The figure exceeded the MOP500 million per day estimated in the second quarter of 2023.

“It’s again the highest non-holiday GGR since the pandemic and bodes well for upcoming summer holidays,” the analysts said.

“At this level, we believe mass GGR is comfortably running at 90%+ of pre-COVID levels, and we continue to expect 100%+ recovery in mass by October.”

Gaming activities in Macau over the last month generated a total of MOP15.207 billion, some MOP358 million less than in May, which reached, so far, the highest monthly GGR of this year, with MOP15.565 billion.

The June result contributes to an accumulated MOP80.136 billion GGR in the first half of this year, a figure that opens the door to a final result of GGR in 2023 that is, on average, far higher than the MOP130 billion forecast of the government. LV

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