Morgan Stanley: Macau mass revenue to reach 90% of 2019 Levels in Q2

Morgan Stanley has predicted that Macau’s mass revenue gaming revenue will rise by 29 per cent quarter-on-quarter.

Macau.- Analysts at Morgan Stanley have predicted that Macau’s mass revenue gaming revenue will rise by 29 per cent quarter-on-quarter, reaching 90 per cent of pre-Covid-19 levels in Q2. They anticipate a 46 per cent increase in EBITA to MOP12.9bn (US$1.6bn), 70 per cent of pre-pandemic levels, free cash flow to equity close to 60 per cent of 2019 levels.

Morgan Stanley credits a series of concerts held in the Special Administrative Region (SAR) as one factor influencing the rise in mass revenue. Meanwhile, improvements in ferry and air travel capacity are facilitating access for visitors.

Analysts expect the trend to continue in the third quarter of the year. It also notes the rise in spending, with per capita spending tracking 50 per cent higher than pre-pandemic levels in 2019. Morgan Stanley project that mass revenue will surpass 2019 levels, reaching 115 per cent and 125 per cent in 2024 and 2025, respectively.

GGR for the first 18 days of June averaged approximately MOP527m (US$63.24m) per day.