Macau on track to hit another post-pandemic high in October

Macau has recorded MOP14.6 billion in gaming revenues as of Monday, according to investment bank JP Morgan, which shows that the casino sector is slated to hit another post-pandemic high.

In a note yesterday, analysts said that the value corresponds to a daily average of MOP635 million and that it is on track to reach another post-pandemic high “quite comfortably,” buoyed by China’s eight-day holiday.

Forecasting a consolidated gross gaming revenue of between MOP18.5 billion and MOP19 billion in October, JP Morgan analysts DS Kim, Mufan Shi and Selina Li said that gaming revenues had normalized back to MOP575 million per day, up by 20% week-on-week.

This comes as the sector experienced a post-Golden Week slowdown, following the eight-day holiday where the city saw over 900,000 visitors.

The Golden Week of the National Day holidays, which is followed the Mid-Autumn Festival holiday, has resulted in a greater number of visitors to Macau than initially forecasted. 

The holiday period posted a 16.4% increase on the expectations stated by Macao Government Tourism Office (MGTO) officials, with a daily average of 116,429.

The city’s casino recovery is sustaining its momentum, despite gaming revenues hitting MOP14. 94 billion in September, a six-month low for the region, but a significant improvement on last year.  The numbers fell 13% from the previous month. Revenues were 68% of 2019 pre-Covid levels.

August revenues soared a staggering 686% from a year earlier to the highest level since January 2020, amid a summer holiday boom.

Gross gaming revenue (GGR) reached MOP17.2 billion, which surpasses the median analyst estimate of a 678% increase and has rebounded to 71% of the 2019 levels.