Macau gaming revenue continues upward trend on the back of summer events, Citi says
Entertainment has driven strong early July figures.
Macau.- The start of July saw a year-on-year rise in gross gaming revenue (GGR) in Macau, driven by summer tourism and concerts from Cantopop icon Jacky Cheung. According to Citigroup analysts George Choi and Timothy Chau, GGR reached MOP4.bn (US$537m) over the first six days of the month, equating to a daily run-rate of approximately MOP717m (US$89.6m). That’s a 30 per cent increase year-on-year.
The figures continue the positive momentum from June, which saw GGR reach MOP21.06bn (US$2.60bn), up 19 per cent year-on-year. Analysts attributed the results to Cheung’s concerts at Galaxy Arena, emphasising the growing importance of non-gaming attractions.
Citigroup has revised its July GGR forecast up by 2.6 per cent from MOP19.5bn to MOP20bn (US$2.5bn). That would represent an 8 per cent year-on-year gain to 82 per cent of July 2019’s pre-pandemic performance.
It forecasts a GGR run rate of about MOP628m (US$78.5m) per day following Cheung’s concert series. Upcoming shows by Hong Kong pop stars Aaron Kwok and Sandy Lam may offer some continued boost, but likely not at the same level.
VIP volumes were largely flat month-on-month, while mass market GGR increased between 2 to 4 per cent. Analysts also noted that VIP hold rates appeared above average, helping to lift overall performance. For the year to date, Macau’s GGR has risen 4.4 per cent year-on-year to MOP118.8bn (US$14.85bn).
