Leading brokerage Bernstein forecasts Macau GGR in September to be down 88 percent from 2019 numbers or lower if China travel restrictions are further increased, and visitation into Macau does not pick up.
In a latest 38-paged detailed report published by Bernstein AB the brokerage is bullish over Las Vegas Sands (LVS) and Sands China titling both stocks as “Best Idea Q3 2022” suggesting how Singapore is leading Asia gaming market recovery and how risk or reward is attractive for Macau, will benefit the companies and investors in third quarter of FY22.
According to weekly gross gambling revenue (GGR) report analysis by Bernstein, Macau’s daily GGR for the start of the first week of September 2022 from Sep 1 till Sep 4 remained weak, registering “only” MOP 88 million, which is still an upward positive swing if compared on a week-on-week case basis, up 12 percent compared to the MOP 79 million ($9.77 million) ADR during Aug 22-31.
Macau’s daily gross gambling revenue (GGR) shot up 9 percent to $11 million on a week-on-week basis between 15-21 August 2022, Bernstein reports.
With challenges of COVID19 and travel restrictions as the relevant factor impacting, Melco Resorts and Entertainment 2Q22 numbers have not made much impact on the leading brokerage’s take for the company.
Leading brokerage Bernstein raises concerns that, “Q3 has been trending worse (for Macau Gaming), as there were 41 days of Macau border closure.” Bernstein expects Greater China travel between Hong Kong, Macau, China and potentially Taiwan to be fully in place by year-end
Despite all negative markers barring the topline growth as reported in the second quarter of 2022, brokerage firm Bernstein maintains an “Outperform” tag for DraftKings, fantasy online sports betting major in the US.
Macau’s casino operators are expected to report near zero revenue for July as Covid restrictions drag, with August likely to be down 89 percent from its pre-pandemic levels, analysts at Bernstein Research wrote.
Macau’s gross gambling revenue is likely to be down 98 percent in July as casinos remain shuttered, with reopening also unclear due to a planned “consolidation period,” Bernstein notes.
Bernstein analysts reduced their GGR forecast for Macau, as they believe that the lockdown “may last longer than seven days.”