Gaming stocks close to levels pre-Covid

Morgan Stanley forecasts mass gross gaming revenue and EBITDA in the second quarter for Macau gaming stocks to be closer to the levels seen before Covid, growing by 29% and 46% quarter-on-quarter, respectively. The broker expects industry EBITDA to grow quarter-on-quarter 46% to USD1.6 billion in the second quarter, which is 70% of 2019 levels. The broker commented that the further rise in mass GGR is likely to come from the recovery of tour groups and higher capacity of ferries and airlines. The forecast continues to be rosy, as mass GGR  is expected to reach 115% and 125% of 2019 levels in 2024-25, respectively.