Deutsche Bank Securities Inc. expects Macau’s gross gaming revenue (GGR) to reach 74% of pre-pandemic levels in 2024, leading Wynn, Sands and MGM to expand their margins by 200 to 400 basis points.
According to the bank’s analysts, Macau’s GGR could even reach 85% of the 2019 levels and lead to a 500 to 700 basis points-expansion for the three gaming operators’ margins, while a recovery of only 64% of 2019 levels and an expansion of 200 to 400 basis points for the three gaming operators’ margins are forecast in the worst-case scenario.
The analysts also noted Macau’s spending per mass-market visitor rose 35 to 40% in April compared to the same period in 2019, highlighting a “very encouraging” trend.
May revenue from the casino sector has surged 366% from a year ago to total MOP15.6 billion in May, again hitting a three-year high following the end of pandemic-related restrictions that led to heavy losses and economic downturn.
For the first five months in 2023, revenues aggregated MOP64.93 billion, up 172.9% year-on-year.
Staff Reporter
