Macau’s gross gaming revenue (GGR) for the first 21 days of March is projected to reach MOP5.8 billion, with the third week’s run-rate standing at around MOP307 million per day, one of the highest non-holiday tallies post-Covid-19, according to a statement filed by JP Morgan on March 22.
The continual growth in Macau indicates the “gradually improving travel sentiments in China post-Chinese New Year,” and also points to a revival of local demand for gaming following the lifting of some Covid-19 testing restrictions, JP Morgan analysts DS Kim and Derek Choi pointed out.
According to the statement, the month-to-date GGR in March has resumed to around 35% of pre-Covid-19 levels. The GGR generated within the mass sector returned to 40-45% of previous levels, whilst the VIP sector returned to 20% of pre-pandemic levels.
Earlier, the brokerage announced that it was anticipating a GGR tally of MOP260-270 million per day for March, which JP Morgan just acknowledged as “a bit conservative” when stacked against the current month-to-date run-rate of around MOP280 million.
The brokerage remains optimistic about the prospect of the city’s gaming business, setting store by a “further sequential recovery into April and May.”
“The pace of recovery should step up sharply from the next big holiday (May Golden Week) in our view, and further accelerate into the second half with more re-openings and potential easing of travel,” JP Morgan stated.
Overall, the mass GGR is projected to recover to 70-75% or 85-90% of pre-Covid levels in the third or fourth quarter of this year, before hitting 100% by 2022.
Meanwhile, brokerage Sanford C. Bernstein Ltd said in its note published on March 22 that Macau’s GGR for the first 21 days of March will be at MOP5.85 billion, as cited in a report by GGRAsia.
The mandatory Covid-19 test requirement to enter casinos has been lifted by the government since March 3.
According to the latest data released by The Gaming Inspection and Coordination Bureau, Macau generated a GGR of MOP7.31 billion in February, representing a sharp surge of 135.6% year-on-year, but down 8.9% month-to-month.
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