Gaming revenue ticks up in August

Macau’s six licensed gaming operators have seen a significant improvement in their gross gaming revenue (GGR) over the first couple weeks of August, according to a recent note from JP Morgan Securities (Asia Pacific) Ltd. Estimated GGR for this period reached around MOP7.1 billion, translating to a daily run-rate of approximately MOP657 million, “meaningfully above the MOP590 million to MOP600 million daily run-rates in June/July,” wrote JP Morgan analysts DS Kim, Mufan Shi, and Selina Li.

This figure represents a notable increase from the MOP645 million daily run-rate at the start of the month and a significant improvement from the MOP590 million and MOP600 million daily run-rates in June and July respectively.

The JP Morgan analysts have kept their August GGR forecast for Macau unchanged, estimating it to be around MOP19 billion to MOP19.5 billion, which they believe could be slightly conservative if the current weekly run-rates are sustained towards the end of the month.

According to the analysts, mass GGR is estimated to be sitting at 110% of pre-pandemic levels, while VIP remains subdued in the low-to-mid 20% range.

Macau’s Gaming Inspection and Coordination Bureau had previously reported a Macau-wide GGR of MOP18.59 billion in July, which was a 5.1% increase from the previous month and 11.6% higher when compared to the year prior. However, some investment analysts had described the July GGR result as “weak” relative to market expectations, citing a likely slowdown in the daily run-rate towards the end of the month.

The mass market segment’s strong performance suggests that the recovery is gaining momentum, and the industry is well-positioned to capitalize on the upcoming summer holidays. Nadia Shaw