Key points:
- Daily revenue from 12 to 18 May reached MOP593m, up 3% from previous week
- May gross gaming revenue expected to increase 4% year-on-year
- Casino stocks in Hong Kong decline despite improving fundamentals
Macau’s average daily gaming revenue rose 3% last week to MOP593m, according to investment bank reports cited by Macao Daily. The uptick, recorded between 12 and 18 May, aligns with seasonal expectations and supports earlier projections for monthly growth.
Citigroup reported that Macau’s gross gaming revenue (GGR) for the first 18 days of May had reached approximately MOP127bn. The bank maintained its forecast of MOP210bn for the full month, representing a 4% increase year-on-year and reaching around 81% of May 2019’s pre-pandemic level.
J.P. Morgan echoed the sentiment, noting that daily revenue in the latest week remained between MOP580m and MOP620m. Based on this range, May’s GGR is expected to come in between MOP200bn and MOP210bn, reflecting stable or modest annual growth.
Good to know: Investment banks expect Macau’s second-quarter GGR to grow 2% to 3% year-on-year, taking into account both April’s strong performance and May’s steady trajectory
Despite these positive indicators, investor sentiment appeared muted. Major Hong Kong-listed casino operators saw their shares decline on Monday. Galaxy Entertainment fell 1.7% to HK$31.55 (US$4.03), Sands China dropped 2.2% to HK$15.14, and MGM China slipped 0.2% to HK$11.06. Melco International suffered the largest drop at 3.24%, closing at HK$3.58. Wynn Macau decreased 0.74% to HK$5.40, while SJM Holdings fell 1.71% to HK$2.30.
Analysts suggest that market participants remain cautious amid broader macroeconomic concerns, despite solid operational performance in the gaming sector.
