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China – Macau’s casino revenues hit post-pandemic high

By - 2 May 2023

Macau’s gaming revenue surged by 450 per cent in April compared to last year’s figures, reaching to MOP14.72bn (US$1.82bn) to become the SAR’s highest total since before the pandemic. 

Month-by-month revenues increased by 15.6 per cent. April included two days from the national Labor Day holiday that runs until May 3 with hotel bookings during Golden Week at full capacity at some venues. 

The year so far has seen Macau’s gaming revenues increase by 141 per cent in the first four months, reaching MOP$49.4bn ($6.12bn). 

Analysts at JP Morgan said: “We think April’s market wide GGR suggests that mass GGR likely recovered to around 75-85 per cent of April 2019’s so a nice pick up from the 65 per cent recovery during 1Q23. VIP has to be close to 25 per cent recovered, driven by the Direct VIP segment. Regardless of the difficulties in comparison, we are confident of a ‘strong recovery’ where mass demand comfortably recovers to over 80 per cent of pre-Covid levels, versus 70 per cent-plus recovery during Chinese New Year.” 

Roth MKLM analyst Edward Engel, added: “Macau stocks are trading at 12x 2019A EBITDA, which is near the mid-point of long-term averages. However, if Mass GGR over Labor Day exceeds 2019 levels we believe investor focus will shift from a GGR recovery to GGR growth vs. 2019.”  

CBRE analysts John DeCree and Max Marsh added: “We continue to see incremental data points that domestic tourism in China is beginning to accelerate, which should mean more room for Macau to run.” 

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