Macau, a renowned hub for gambling, has seen intriguing trends in its gross gaming revenue (GGR) for the first 10 days of March.
Overview of March Gaming Revenue:
Macau’s GGR for the initial 10 days of March totaled MOP$6.1 billion (US$757 million), equivalent to MOP$610 million (US$75.7 million) per day. This figure, merely 3% lower than the average daily revenue of MOP$630 million (US$78.2 million) recorded in the preceding two months, showcases a stable performance despite post-Chinese New Year expectations.
Post-Chinese New Year:
Analysts DS Kim, Mufan Shi, and Selina Li from JP Morgan highlight that the observed daily run-rate aligns with historical trends, reflecting a 4% decline typically experienced in March. This resilience suggests sustained demand after the holiday period, contrary to anticipations of a sharper downturn.
Factors Influencing February’s GGR:
February’s GGR, reported at MOP$18.5 billion (US$2.3 billion), fell below expectations. Analysts attribute this discrepancy to factors such as luck and elevated market expectations rather than a pronounced slowdown post-holiday.
Assessment of Pre-COVID Levels:
JP Morgan’s analysts provide insights into the comparison of current GGR levels with pre-COVID benchmarks. Mass GGR from March 1 to 10 is estimated to be at 110% of pre-COVID levels, showcasing resilience and continuity. Similarly, VIP gaming remains stable at 20% of pre-COVID levels, indicating consistent performance across different segments.
Comparison with Previous Quarters:
Comparing current performance with historical data unveils interesting patterns. The mass GGR’s improvement to 110% of pre-COVID levels from the previous quarter’s 104% signifies an upward trajectory.
Market Outlook and Implications:
Looking ahead, these insights provide valuable perspectives for stakeholders in Macau’s gaming sector. Understanding the resilience of demand post-holidays and the stabilization of VIP gaming levels aids in formulating strategic decisions. Moreover, insights into market trends enable stakeholders to anticipate and adapt to changing dynamics effectively.
Macau’s gaming revenue performance for March’s initial days reflects stability and resilience, aligning with historical trends. Furthermore, comparisons with pre-COVID levels and previous quarters offer valuable insights into the market’s evolution. As stakeholders navigate the dynamic landscape of Macau’s gaming industry, these insights serve as crucial guideposts for informed decision-making.