The analysts maintain expectations for moderate GGR growth in 2024, which translates to a conservative valuation stance.
Some travels to Macau initially canceled due to unfavorable weather conditions during the Labour Day Golden Week have been rebooked, leading to a ‘more gradual’ post-holiday deceleration, brokerage firm Jefferies noted in a recent report.
According to industry sources and checks, Macau’s daily average gross gaming revenue (GGR) for the first five days of May was MOP910 million (US$113 million).
The month-to-date mass GGR and VIP segment GGR figures showed a month-on-month increase of 45-50 per cent and 60 per cent, respectively, while VIP win rate rose to 3.3-3.5 per cent.
“This is a strong start to the month driven by Labor holiday and was only slightly below the first six days of 2023’s October Golden Week of MOP930-940 million/day,” the analysts wrote.
According to industry estimates cited by the brokerage, daily GGR for the rest of the month is expected to slow down to MOP580-650 million. This implies a full-month GGR range of MOP19.6-21.5 billion, translating into a daily run-rate of MOP633-692 million. The analysts said that even at the lower end of the range, the figure would still represent the second highest monthly average daily rate year-to-date.
The brokerage indicated that Macau gaming stocks would continue to be impacted by concerns about China’s macroeconomic growth, which could potentially influence future overseas travel.
