Macau GGR at US$595mln in first 9 days of July: JP Morgan

Jul 10, 2023 Newsdesk Latest News, Macau, Top of the deck  

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Market-wide casino gross gaming revenue (GGR) in Macau reached MOP4.80 billion (US$595.2 million) in the first nine days of July, or a daily run-rate of over MOP530 million, versus MOP500 million per day in the second quarter, according to estimates from JP Morgan Securities (Asia Pacific) Ltd.

“While we note this period benefitted from two weekends, this is a very solid print – in fact, it’s again the highest non-holiday GGR since the pandemic – and bodes well for upcoming summer holidays,” stated the brokerage in a Monday note.

“At this level, we believe mass GGR is comfortably running at 90-percent-plus of pre-Covid level, and we continue to expect 100-percent-plus recovery in mass by October,” wrote analysts DS Kim and Mufan Shi.

Macau recorded casino gross gaming revenue (GGR) of just under MOP15.21 billion in June, down 2.3 percent from May.

In a note last week, JP Morgan suggested that Macau’s casino operations were likely to have achieved in the second quarter “all-time high” margins in terms of earnings before interest, taxation, depreciation and amortisation (EBITDA). The institution estimated that sector-wide EBITDA margin peaked at 26 percent during the period.

The JP Morgan team added that margins could continue to improve, “to hit 30 percent by 2025”.“The earnings up-cycle is far from over,” it said.

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