MGM Macau gross gaming revenue jumps by 450%

Content Team 1 year ago
MGM Macau gross gaming revenue jumps by 450%

The Gaming Inspection and Coordination Bureau in Macau announced remarkable results for Quarter 1. Gross gaming revenue (GGR)  for the first quarter in the region increased 450 percent year on year from 2.68 billion patacas (US $0.33 billion) to 14.72 billion patacas (US $1.82 billion). All stakeholders welcomed the news and results exceeded analysts’ expectations.

Total revenue rose by 141 percent year on year and was reported at 49.36 billion patacas (US $6.10 billion)

Forecast of full recovery in 2024-2025

GGR has not yet risen to pre-COVID results however Deutsche Bank and JP Morgan analysts forecast a full recovery of the sector in Macao by 2024-2025.  According to their reports, the sector has the potential to yield more than 168 billion patacas in GGR this year. The figure reported in 2019, prior to the start of the pandemic was 292.6 billion patacas. The forecasts even estimate earnings that will exceed the pre-pandemic figures by 110 percent for this period.

The GGR tally was 15.6 percent higher in April month on month thank in March. This was a result of the national labour day holiday in April known as “golden week”. It included two days of holiday in April that have been extended until 3 May. Visitors to Macau this year have recovered to 58 percent of pre-COVID levels this year. Accommodation in most hotels is fully booked. Macau’s Secretary for Economy and Finance, Lei Wai Nong, announced that Macau welcomed more than 98,000 tourists on Saturday, 15 April.

Operators pledge to invest in the region

Land-based casinos and online gaming operators in Macau have committed to spend US $13.5 billion on non-gaming concessions. The new offers will be integrated with the casino and gaming concessions. The investment will also include support of  community projects to “activate the vitality of the city and accelerate the recovery of the tourism market.”

The sector is working hand-in-hand with the Government of Macao.

Steady and consistent growth

The Q1 results made a positive impact on analysts reports. They said that Macau is “intact”, “steady” and “sequentially growing” with signs of recovery that are still in its relatively early innings.

Macau stocks are trading at 12x 2019A EBITDA, which is near the mid-point of long-term averages. However, if Mass GGR over Labor Day exceeds 2019 levels we believe investor focus will shift from a GGR recovery to GGR growth vs. 2019.” Edward Engel, Analyst – Roth MKM 

Shares of Wynn Resorts (WYNN) rose 1.86 percent in premarket trading, Melco Resorts (MLCO) saw an increase of 3.69 percent and Las Vegas Sands (LVS) gained 1.88 percent. MGM Resorts (MGM) showed a rise of 1.27 percent.

Macau gaming concessions a world centre of tourism

With a view for more scrutiny and transparency, a committee was set up in July 2022.  The responsibility of the committee was to oversee the gaming concessions and public tendering process in Macau.

A public tender for gaming concessions was open to invite interested parties.

Seven companies submitted bids to run gaming and casino concessions in the region. Gaming concessions were granted to MGM Grand Paradise SA, Galaxy Casino  Venetian Macau, S.A., Melco Resorts (Macau) S.A., Wynn Resorts (Macau), S.A. and SJM Resorts and SA in December 2022.

The government and operators signed contracts for a term of ten years effective from 1 January 2023.

Gaming operators integrated other recreational offers and integrated ten new categories and recreational offers within their concessions. Therefore this gave tourists and visitors the flexibility of choice. The integrated sectors include performing arts,  sports events, culture and art, healthcare and themed amusement. This resulted in a rise in the numbers of visitors to Macao. The region was able to offer something to suit every taste and preference. Furthermore most of the concessions also added convention and exhibition venues as well as other forms of entertainment and this created a one-stop shop.

 

Related topics:

Third round of bidding for Manchester United Football Club (sigma.world)

Is it countdown for the publication of the White Paper?

UK Government publishes football white paper

STOP PRESS:  SiGMA Americas – World iGaming Festival will take place in Sao Paolo from 14 -18 June.

 

 

Share it :

Recommended for you
Shirley Pulis Xerxen
12 minutes ago
Lea Hogg
50 minutes ago
Lea Hogg
1 hour ago
Garance Limouzy
2 hours ago