JP Morgan Securities estimates that Macau’s VIP gross gaming revenue (GGR) will only reach 20 per cent of pre-pandemic levels during the second quarter of the year.
Macau.- After Macau’s GGR registered a decline of 37 per cent to MOP$6.54bn ($817.3m) in June, JP Morgan Securities has predicted that VIP GGR during the second quarter of the year will reach only about 20 per cent of pre-pandemic levels.
According to analysts, the VIP segment has not shown signs of improvement and levels will be almost the same as in the first quarter.
The mass/slot market comprises 77 per cent of Macau’s GGR, making the VIP market “virtually negligible for the sector’s profit and cash flows.”
JP Morgan predicted second-quarter VIP GGR will be near MOP$5.73bn (US$716.3bn), while mass-market GGR, including slots, will come to around MOP$19.65bn.
Despite these numbers, analysts noted that Macau will see its highest GGR since the Covid-19 pandemic began, thanks to a robust May and a solid recovery in mass.
May saw the highest GGR of the year to date, mainly thanks to the Labour Day break, when Macau’s Public Security Police reported that 165,500 tourists came to Macau.
As for July, analysts said GGR will only reach 35 per cent of pre-pandemic levels, with similar numbers to those seen in April, between MOP$8.5bn and MOP$9.0bn.