The year so far has seen Macau’s gaming revenues increase by 141% in the first four months, reaching US$6.12bn.
Analysts at JP Morgan said: “We think April’s market wide GGR suggests that mass GGR likely recovered to around 75-85% of April 2019’s so a nice pick up from the 65% recovery during 1Q23. VIP has to be close to 25% 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%-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 concluded: “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.”
Source: G3 Newswire
