Macau mass market spending on the rise, analysts say

Deutsche Bank analysts say spending per mass-market visitor has increased by 35-40 per cent compared to 2019.

Macau.- Deutsche Bank Securities analysts have highlighted the “very encouraging” trends in Macau’s mass market. It says per-visitor spending has risen by 35 to 40 per cent compared to the same period in 2019. According to the investment bank, this indicates positive prospects for the gaming industry.

Analysts Carlo Santarelli, Steven Pizzella, and Alfonso Straffon reevaluated their market outlook for 2024. They said that while the worst-case scenario predicts gross gaming revenue (GGR) reaching only 64 per cent of 2019 levels next year, Wynn Macau, Sands China, and MGM China can expect to experience expanded profit margins of around 200 to 400 basis points.

In a more optimistic base-case scenario, where 2024 GGR rebounds to 74 per cent of 2019 levels, each of the three major gaming operators is projected to see profit margin expansions ranging from 400 to 600 basis points. If 2024 GGR recovers to 85 per cent of 2019 levels, Wynn, Sands, and MGM are expected to see expanded margins of 500 to 700 basis points.

Analysts have previously predicted that Macau’s GGR could reach $21.47bn this year. That would be up 307 per cent yearly but 41 per cent lower than in 2019. The Macau government’s budgetary predictions for 2023 anticipated GGR of MOP$130bn (US$16bn).

Deutsche Bank has forecast US$5.56bn in gross gaming revenue (GGR) for the second quarter of 2023. That would be up 423 per cent year-on-year but still 39 per cent below 2019.