With visitation up, Macau’s casino sector generated a 19 per cent year-on-year increase in gross gaming revenue in July, reaching US$2.7bn, according to figures released today (Friday) by the Gaming Inspection and Coordination Bureau.
July became the fourth consecutive month that Macau has outperformed analyst projections, with the latest results beating the expected 13 per cent increase.
Revenue levels are now at 90 per cent of their pre-pandemic best in 2019. The July result has prompted Morgan Stanley to raise its Macau GGR and EBITDA growth forecasts for 2025.
Morgan Stanley analysts Praveen Choudhary, Anson Lee and Stephen Grambling believe the Macau casino market will increase its revenues by 10 per cent year-on-year in 2025, doubling its earlier forecast.
The analysts said this was due to ‘higher visitation (+25 per cent year-on-year in 2Q25 from mainland China) owing to easier visa issuance (multi-entry visa for Shenzhen and Zhuhai, more IVS cities added), increases in concerts featuring popular Asian performers and a higher number of junkets.”
“Macau has also benefited from reductions in mainland and Hong Kong visitors to Thailand and Japan lately, and RMB strength has helped as well,” they added. “We previously highlighted our framework in which mass revenue growth of more than five per cent would drive operating leverage and reduce competition. Our new estimate of +10 per cent year-on-year would result in estimate increases and re-ratings as Macau moves from an ex-growth industry to growth. With China consumption still weak, Macau should provide welcome relief for investors.”
Macau saw 2.9 million tourist arrivals in June, reaching 93 per cent of June 2019’s level.
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With visitation up, Macau’s casino sector generated a 19 per cent year-on-year increase in gross gaming revenue in July, reaching US$2.7bn, according to figures released today (Friday) by the Gaming Inspection and Coordination Bureau. July became the fourth consecutive month that Macau has outperformed analyst projections, with the latest results beating the expected 13 per…
The post Macau’s July revenue reaches 90 per cent of pre-pandemic levels appeared first on G3 Newswire.