Home market recovery
Although Macau's gross gambling revenue showed significant improvement in May, both year-on-year and sequentially, significant headwinds remain and the figures did little to excite stock investors.
Jennifer Song, equity analyst with Morningstar, spoke with Asia Gaming Brief managing editor Sharon Singleton about visitation to Macau during the recent Chinese New Year period and the outlook for recovery. The longer-than-usual May holiday may be a key catalyst for growth.
Macau Gross gambling revenue (GGR) in March is expected to be down in the low to mid-sixties percent from the same month last year, though visitation is expected to improve in Spring and travel with Hong Kong may resume from Q2, Bernstein Research said in a note.
The last two of Macau’s operators released Q4 results on Thursday, with both returning to profit at the EBITDA-level and expressing confidence in the market recovery.
Macau operators focused on the premium mass market are likely to significantly outperform in the short term, while the VIP sector may take another two years to recover, according to Bernstein Research.
Faced with the ongoing onslaught of negative news from around the world, you may have missed a few things this week that when put together point to a more optimistic view of Asia’s gambling industry.
The simplification of visa procedures for Chinese visitors is key to drive a more robust recovery in Macau, where this year’s Golden Week figures proved disappointing, according to a note from Bernstein Research.
A Bank of America survey held in August found that only 47 percent of Mainland Chinese travellers who want to visit Macau would be willing to take a Covid-19 test, casting doubt on visitation for the upcoming Golden Week holiday.