Deutsche Bank Securities Inc has updated its predictions for Macau’s GGR.
Macau.- Deutsche Bank Securities has revised its outlook for Macau’s Q4 GGR to just above US$1.82bn, down 23.5 per cent year-on-year. That compares with a 70.4 per cent year-on-year contraction in the third quarter.
Based on Deutsche Bank’s expectations, mass-market gross gaming revenue will be just over US$1.42bn, down 20.2 per cent; and VIP gross gaming revenue will be US$411.7m, down 32.9 per cent.
The forecast comes after Macau reported that GGR in October was up 31.6 per cent month-on-month, from MOP2.96bn (US$366.3m) to MOP3.90bn (US$482.3m). Macau’s GGR for the first ten months of 2022 combined stands at MOP35.72bn.
The company predicts that the return of electronically-issued exit visas for Chinese residents will boost GGR. Earlier this week, the analyst DS Kim of JP Morgan Securities (Asia Pacific) suggested Macau’s gaming sector could reach positive earnings before interest, tax, depreciation and amortization (EBITDA) and about 35 per cent of pre-pandemic mass gross gaming revenue (GGR) in the following months.
However, given the detection of new cases of Covid-19 in Macau and mainland China, the scenario could easily change. After 10 new confirmed cases of Covid-19 infection, an initial round of mass testing concluded on Wednesday (November 2), with a second round scheduled for Friday and Saturday (November 4 and 5).
Earlier this week, the MGM Cotai integrated resort was sealed off for 48 hours after a casino table croupier tested positive. Some 1,596 people were quarantined at the complex, including staff and hotel guests.