Macau’s premium mass GGR rebounds to 100% of pre-pandemic levels
JP Morgan believes the GGR run-rate increased to about MOP600m a day by the end of July.
Macau.- JP Morgan Securities (Asia Pacific) has reported that Macau’s casino gross gaming revenue (GGR) potentially rebounded to “100 per cent plus” of pre-pandemic levels in July, primarily driven by the premium mass gaming segment.
The report notes that the premium mass segment’s resurgence has been a key driver in Macau’s post-pandemic performance. In contrast, the grind/base mass segment has shown a recovery of around 80 per cent.
JP Morgan’s analysis notes that while the VIP segment showed a modest improvement to approximately 27 to 28 per cent in July, it has yet to significantly impact earnings before interest, taxation, depreciation, and amortization (EBITDA) and cash flows.
According to JP Morgan, the GGR run-rate likely increased to about MOP600m a day by the end of July despite a temporary setback caused by Typhoon Talim.
The Gaming Inspection and Coordination Bureau reported a 9.6 per cent month-on-month rise in GGR for July to MOP16.66bn (US$2.07bn). That’s a daily GGR run rate of approximately MOP537m, about 68 per cent of pre-Covid-19 levels.
Casino GGR stood at MOP96.80bn (US$12bn) for the first seven months of the year. Moody’s expects Macau GGR to reach 45 per cent of 2019 levels this year at roughly MOP131.6bn (US$16.31bn).
