Macau casino EBITDA to reach US$1.97 bn in Q2, analysts say

Morgan Stanley expects Macau’s gaming industry property EBITDA to be down 4 per cent quarter-on-quarter.

Macau.- Analysts at Morgan Stanley have predicted that Macau’s gaming industry property earnings before interest, taxes, depreciation, and amortisation (EBITDA) will be down 4 per cent quarter-on-quarter to MOP15.85bn (US$1.97bn) for the second quarter. Analysts Praveen Choudhary, Gareth Leung, and Stephen Grambling said the estimate was based on projections of increased operating expenses and steady reinvestment costs.

Analysts anticipate a 2 per cent decrease in Macau’s GGR to US$7.1bn, which would be a recovery of 77 per cent of the pre-pandemic level.

Macau’s gross gaming revenue (GGR) for June was MOP17.69bn (US$2.20bn). The figure was up 16.4 per cent year-on-year but down 12.4 per cent month-on-month. The tally was the lowest this year but recovered to 74 per cent of 2019 levels. Despite concerns about the removal of free snacks for non-gamblers, a decline in referral programmes and weaker retail sales, analysts viewed the figure positively.

Cumulatively, Macau’s GGR for the first half of 2024 was MOP113.8bn (US$14.20bn), up 41.9 per cent year-on-year but 23.9 per cent below the same period in 2019.

See also: Macau GGR to reach US$28.7bn this year, Seaport Research Partners says