Macau to reach pre-pandemic levels in early 2023, analysts say

BofA Securities predicts that GGR in early 2023 could exceed results from May 2021, the best monthly performance since the Covid-19 pandemic began.

Macau.- Analysts at BofA Securities have said that Macau’s gaming industry could see its best results since the Covid-19 pandemic in early 2023 following the resumption of electronic visas in China.

Earlier this week, Ho Iat Seng, Macau’s chief executive, announced that tour packages from mainland China will resume in November. Seng also announced the return of electronically-issued exit visas for Chinese residents, including the Individual Visit Scheme (IVS).

Macau hopes the move will see the number of daily visitors rise to 40,000, compared with just 11,000 in August. Analysts at BofA Securities believe gaming revenues in early 2023 could exceed May 2021’s MOP10.45bn (US$1.3bn), which was the best monthly performance since the pandemic began in early 2020.

Macau’s GGR for the first eight months of 2022 combined stands at MOP28.86bn (US$3.58bn), down 53.4 per cent year-on-year. In August, GGR was up 450 per cent from MOP398m (US$49.2m) to MOP2.19bn (US$270.8m).

Macau casino operators could return to positive EBITDA in Q4

As previously reported by Focus Gaming News, JP Morgan analysts have predicted that the industry’s mass GGR could recover to 25-30 per cent of pre-Covid-19 levels in the fourth quarter before increasing further in 2023.

He added: “Most operators can turn EBITDA [earnings before interest, taxation, depreciation and amortization] positive when mass GGR hits around 30-35 per cent of pre-COVID levels… indicating some companies can start to print positive profits from 4Q. “

Analysts believe that liquidity will not be an issue for all Macau gaming operators next year as the market gradually recovers, with the exception of SJM Holdings Ltd due to its capital expenditure for Grand Lisboa Palace.