Operator News
China – Third quarter could see Macau casino EBIDTA reach 80 per cent of pre-covid levels
By Phil - 23 August 2023
Macau’s casinos could be back up to 80 per cent of 2019’s EBITDA by the end of the September quarter with Morgan Stanley tipping MGM China to hit 120 per cent
The investment bank believes gaming revenues could increase by 12 per cent in the third quarter. Analysts Praveen Choudhary and Gareth Leung highlighted that ‘more tables, redesigned casino floors, adding F&B (including bubble tea) on the floor, removing walkway at the casino floor, use of RFID chips, creative marketing programs, and personalized experiences rendered,’ would all play their part.
“By the end of 2Q23, the majority of [rooms] were in operation. This suggests that incremental growth in operating expense will be much less in 3Q/4Q across the board, resulting in strong operating leverage. Similar to luxury sales in China, the top one per cent of mainland Chinese are traveling and spending on entertainment. This is why the recovery is premium led (and grind mass has lagged). Younger patrons are visible on casino floors as well as around the resorts. High end customers are spending as much or even more than pre-COVID levels.”
