Citi highlights Macau’s GGR improvements last week

Citi Research noted in a report that, according to industry sources, Macau’s gross gaming revenue (GGR) for the first 11 days of June may have reached approximately MOP5.5 billion. This implies that the average daily GGR for the past week is expected to be around MOP529 million, an increase of about 18% compared to the first four days of June.

The surge in revenue is believed to be “mainly due to the number of visitors driven by Jacky Cheung’s concerts held from June 9 to 11,” the note said.

The broker is maintaining its forecast for the city’s GGR in June at MOP13.5 billion, representing a 57% increase compared to June 2019 levels – which is seen as a positive outcome by the operators.

In a recent interview with the Times, Wilfred Wong, president of Sands China, warned that the “big test” for the industry’s recovery would be the results of June and July, typically, a slow season for gaming.

In May, revenue from the casino sector skyrocketed by an impressive 366% year-on-year, totaling MOP15.6 billion. The monthly earnings were boosted by a five-day national holiday, which saw approximately 300 travel groups and nearly 500,000 visitors. The number of visitors increased by over 262% compared to the May Day holiday last year and recovered to about 62% of the level seen in 2019 before the Covid-19 pandemic.

Analysts had previously forecasted that casino floor revenues would reach a new post-pandemic high.

The ongoing robust recovery, according to the firm, indicates elevated baseline demand levels, similar to what was observed during the Lunar New Year in late January this year.

In just the first four months of this year, gross gaming revenue surpassed the total amount generated in the entirety of last year. It recorded MOP49.23 billion, which is 16.7% higher than the MOP42 billion recorded in 2022.

For the first five months of 2023, revenues aggregated MOP64.93 billion, representing a significant 172.9% year-on-year increase. PC