It was a positive June for some Asia-based casinos, most notably in South Korea, Macau and Singapore, as their respective gaming industries logged soaring revenues for the month, with some outperforming pre-pandemic levels.
According to investment bank JP Morgan, in an article published in Inside Asian Gaming, Macau gaming operators report all-time high EBITDA margins in the second quarter of 2023.
According to Macau’s Gaming Inspection and Coordination Bureau, revenues were up to USD 1.88 billion, which, according to JP Morgan analysts DS Kim and Mufan Shi, represented a 47% improvement over the 1Q23. The analysts also projected profitability reaching more than half of pre-pandemic levels in 2019.
In a similar vein, leading South Korean casinos have reported increased revenues flor the reported month. Casino giants Paradise Co and Grand Korea Leisure (GKL), which are foreigner-only, reported a collective sale of KRW 532.9 billion in June, according to another IAG report.
GKL revenues were up by 16.7% while Paradise Co, 1.4%, both compared to May. The latter’s growth contributed to its overall 249% growth year-on-year, worth KRW 352.4 billion.
The success of the foreigner-only casino industry in Korea is owed to Chinese mass market customers, according to the same report.
Singapore’s Genting, on the other hand, despite a ‘sluggish’ growth, is on track to surpass pre-COVID performance for the rest of the year. According to another IAG report, this is owed to an improved performance by the company’s integrated resort, Resorts World Sentosa in the second quarter.
Maybank analyst Samuel Yin Shao Yang said that mass market GGR for Genting will also reach 120% of 2019 GGR, as the Chinese market continues to drive this growth. Yang also added that Genting Singapore will not attempt to apply for an IR license in Yokohama City, Japan.
Since being seated as Yokohama City’s mayor in 2021, Takeharu Yamanaka has closed the city’s IR Promotion office, effectively also revoking Genting’s application to set up shop in the city.
The Asia Pacific region’s gaming market is seen to reach a value of USD 322.4 billion by 2026.
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