Macau’s gross gaming revenue has maintained strength in the weeks since the May Day Golden Week holiday period, with GGR through the first 14 days of May estimated at MOP$8 billion (US$991 million) or MOP$570 million (US$70.6 million) per day, according to investment bank JP Morgan.
Providing its weekly channel checks on Monday, JP Morgan analyst DS Kim noted that GGR had held strong in the days since Golden Week at a run-rate of around MOP$500 million (US$61.9 million) per day – still well above the MOP$400 million (US$49.5 million) generated prior to the holiday.
“In other words, a (very) strong print from the holiday wasn’t just a one-week wonder and seems to have had an effect of elevating baseline demand levels, similar to what we saw during Lunar New Year in late January,” Kim said.
Based on current estimates, mass demand has now reached between 80% and 85% of pre-COVID levels with VIP between 25% and 30% – both well above the 65% mass and 15% VIP levels recovery rates in 1Q23.
“Of note, 25% to 30% of VIP GGR recovery implies direct VIP revenues likely doubled vs pre-COVID levels given the demise of junkets; VIPs still don’t move the needles for profits/CFs, but we believe this level of recovery is pretty impressive nonetheless.”
Junkets, Kim observed contributed around 85% of VIP revenues pre-COVID with 15% from direct VIP.
Macau’s gaming revenues have been rising steadily each month since reopening in January, with April GGR having reached a 39-month high of MOP$14.72 (US$1.82 billion).
RelatedPosts
