Gaming revenue faces modest decline in February

The city’s gambling revenue for February is projected to range between MOP18.3 billion and MOP19.4 billion, with analysts forecasting a year-on-year change of -1% to +5%, according to reports from major brokerage firms.

Reports indicate that the average daily gambling revenue in Macau from February 10 to 16 was MOP642 million, down from MOP725 million during the Lunar New Year period.

For the first 16 days of February, total gaming revenue stood at MOP11.9 billion. Morgan Stanley forecasts that total gambling revenue for February could range from MOP18.3 billion to MOP19.4 billion, suggesting a slight year-on-year decline of 1% or a potential increase of up to 5%.

Meanwhile, Macquarie anticipates revenue between MOP18.5 billion and MOP19.3 billion, projecting a year-on-year decrease of 1% to 3% for the first two months.

Bank of America Securities noted that Lunar New Year travel patterns may have influenced the numbers, as many tourists postponed their visits until after February 5.

They predict that gaming revenue for the month will remain flat compared to last year, with a slight month-on-month increase, indicating a combined year-on-year decline of 2% to 3% for January and February.

Additionally, Macquarie highlighted shifts in market share among Macau’s major resorts. Sands China and Melco Crown saw market share increases of 1.5% and 2%, respectively, in January, while Wynn Macau and MGM China experienced declines of 1.5% and 2%.

Analysts suggest that ongoing renovations at Sands China may boost its appeal, making it a favored choice among investors.

Despite mixed trends, analysts remain cautiously optimistic, with Galaxy Entertainment, MGM China, Wynn Macau, and Sands China favored for their growth potential.

However, SJM and Melco Crown received “neutral” and “underweight” ratings, reflecting ongoing challenges in the sector. Victoria Chan