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Casino revenues expected to dip slightly in July: JP Morgan
Macau is expected to generate MOP18.5 billion in gross gaming revenue this month, slightly below the original forecast of MOP19 billion. According to JP Morgan Securities Asia Pacific, the downward revision is attributed to a “slower start to the month.”
“This implies that last week’s run-rate improved 15% week-on-week to MOP635 million per day (from only MOP550 million per day in week 1) as summer holiday demand gradually kicked in,” analysts DS Kim, Mufan Shi and Selina Li wrote in a recent note.
The first 14 days of the month saw about MOP8.3 billion in revenue, or MOP593 million per day, the analysts reported. They also noted that a gradual improvement in casino revenues is also expected following the recent conclusion of the UEFA European Championship.
“This is a little softer than the trends in Q2, but this is a weekly trend that can be very volatile either way and we wouldn’t read too much into the print just yet,” the analysts added.
In terms of the mass market, the current level is between 105% and 110% of pre-Covid levels, while the VIP sector is around the low to mid-20% range.
Authorities expect rising tourism over the summer holidays to boost visitation and hotel occupancy in Macau to pre-pandemic levels, which should further aid the casino revenue recovery from its pandemic lows.
