HSBC predicts four Macau casinos will pay dividends this year

Operators have expressed a commitment to delivering returns to shareholders.

Macau.- HSBC Global Research has predicted that MGM China, Wynn Macau, Galaxy, and Sands China will distribute dividends this year, while Melco and SJM are expected not to. According to Charlene Liu, Jessie Lu, and Lauren Cai, Macau’s gaming demand remains robust, and operators have expressed a commitment to delivering returns to shareholders.

They maintain a positive outlook on MGM China and Galaxy, citing favourable trends across all business segments, particularly in the VIP sector, and anticipating an increase in visitor frequency with the expansion of non-gaming offerings, potentially mitigating seasonal fluctuations.

See also: Macau VIP baccarat revenue up 67.9% in Q1

According to Macau Business, they said senior management at MGM and Wynn have indicated that intense market competition could put pressure on margins for the high-end mass segment but that operating leverage could buffer the effects as top lines continued to grow.

In March, MGM China announced a final dividend of HK$0.243 per share and a special dividend of HK$0.104 per share for 2023. For the same fiscal year, Wynn Macau declared a final dividend of HK$0.075 per share.

Macau’s GGR for March was MOP19.50bn (US$2.42bn), an increase of 5.5 per cent month-on-month and 53.1 per cent when compared to March 2023. Cumulatively, Macau’s GGR for the first three months of 2024 was MOP$57.3bn (US$7.11bn), up 65.5 per cent year-on-year and implying a full-year run rate of around MOP$229.2bn (US$28.4bn).