Macau gaming operators generate GGR of $1.07 billion for first 14 days of 2024

In the first two weeks of January, Macau’s casino operators kept up a steady pace, estimating gross gaming revenues (GGR) of MOP$8.6 billion (US$1.07 billion), or around MOP$614 million (US$76.2 million), each day.

The run rate over the last seven days has been about MOP$600 million (US$74.5 million) per day, according to investment bank JP Morgan. This is a little less than the MOP$630 million (US$78.2 million) over the New Year’s break, but it is still considered strong against seasonality.

While VIP remains steady at 20%, mass GGR performs well, reaching 105% to 110% of pre-pandemic levels. The GGR is expected to slow down in the weeks before Chinese New Year, according to analysts DS Kim, Mufan Shi, and Selina Li, but to rebound in January, ranging from MOP$17.5 billion to MOP$18 billion (US$2.17 billion to US$2.23 billion).

Analysts project that industry-wide EBITDA will rise by 8% to 9% quarter over quarter as the fourth quarter of the 2023 earnings season draws near, reaching 85% of pre-COVID levels on a luck-adjusted basis. Investor scrutiny of operating expenses, marketing, and reinvestments is something they anticipate happening, especially in light of the third quarter’s minor margin disappointments. They do anticipate that the majority of operators will succeed in these fields, however.

Original story by: IAG