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Citi - Macau’s Big 6 EBITDA to remain strong

Citi stated that the approximately 28% EBITDA margin for Macau’s Big Six is still strong even in the face of weaker sales and renovations.

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Investment bank Citi has predicted that the combined EBITDA margins for the six biggest gaming concessionaires in Macau will hit an estimated 28%; remaining strong in June 2024 . 

The analysis by Citi’s George Choi and Ryan Cheung indicated that “industry EBITDA is likely to have decreased about 5% quarter-on-quarter to about MOP15.66bn (US$1.95bn), even though GGR only fell by 1.6% quarter-on-quarter to MOP56.4bn (US$7.02bn).”

“However, our analysis suggests that EBITDA margin for the six casino operators in aggregate still holds up relatively well at around 28% – and this is already reflecting the significant disruption from The Londoner Phase II renovations and the weaker retail sales,” Citi added.

Galaxy Entertainment Group and Melco Resorts & Entertainment were the two noted by Citi as market share gainers in 2Q24, especially with Galaxy increasing its share from 17.3% to 19.1% due to an “increase in number of marketing hosts and a more flexible player reinvestment strategy.”

Melco’s revenue for Q1 2024 was up 55% and adjusted EBITDA shows growth of over $100m. Galaxy’s Q1 2024 revenue also showed an increase of 50% to HK$10.6bn.

The other concessionaires also showed an increase in their Q1 2024 revenue, with MGM’s revenue surging to HK$8.3bn (US$1.06bn), SJM’s gross gaming revenue reaching HK$6.89bn (US$882m) and Wynn Resorts’ revenue at $1.86bn.

Macau’s gross gaming revenue in June 2024 reached MOP$17.7bn (US$2.21bn), representing year-on-year growth of 16.4%.


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