Macau GGR to fall this month, analysts say
June is typically the weakest month for GGR in Macau.
Macau.- JP Morgan Securities (Asia Pacific) have predicted a fall in Macau’s gross gaming revenue (GGR) this month due to seasonal factors. Analysts DS Kim and Mufan Shi estimate that GGR for the first four days of June was MOP1.80bn (US$223m), which aligns with run rates in the second half of May (10 per cent below the full-month figure).
A downturn in June would be expected since it’s typically the weakest month for casinos in Macau. Analysts indicated that mass revenue and EBITDA are likely to reach 80 per cent and 65 per cent of pre-Covid levels respectively in the second quarter of the year.
The release of second-quarter results will coincide with the summer holiday season, which marks the first time since reopening that there will be no hotel or labour constraints. JP Morgan believes this period will stabilise investment sentiment, not only for Macau but also for Hong Kong and China.
In May, Macau’s gaming industry generated MOP15.57bn (US$1.93bn) in GGR. The figure was up 5.7 per cent when compared to April and up 365.9 per cent from May 2022. The results were the best since January 2020, before the start of the Covid-19 pandemic.
May was the third consecutive month in which sales increased sequentially. Accumulated GGR for the first five months of the year was MOP64.93bn (US$9.71bn), a 172.9 per cent yearly increase.
