Credit Suisse: casinos set for peak revenue period in final days of April

Credit Suisse’s channel data shows that the casino sector is set to record around MOP750 million a day in revenues from April 20 to May 1.

The brokerage said that the street was broadly upbeat about MGM China, Sands China and Galaxy.

It expected Sands, MGM and Galaxy to see more share gains into the second half, reiterating its view that the sector should see upside in short term, as cited in a report issued by AAStocks Financial News.

Previously, according to data from Citigroup, Macau’s casino revenues for the first 10 days of the month have reached MOP4 billion, implying a daily run rate of around MOP400 million.

According to Citigroup, “Based on industry sources, VIP volumes were down approximately 10 percent month-on-month and mass volumes were largely flat month-on-month. VIP hold rate appears to be around normal level.”

Official data shows that the Baccarat card game continues to be the game of choice for most casino patrons in Macau, generating a gross gaming revenue of MOP29.1 billion in the first quarter of this year. The figure represents 84.1% of all GGR from Q1 which has reached as much as MOP34.6 billion.

Macau’s casinos had their best month since the earliest days of the pandemic, with gaming revenue surging 247% in March after Chinese tourists flocked to the city. LV