Good morning. Analysts are predicting a bright future for Macau, after a bleak three years. Morgan Stanley is now saying China’s reopening and more cash on hand by Chinese visitors will help drive up Macau operators’ EBITDA sharply, increasing FY23 estimates by 70 percent. But international visitation could still be slow to rise, with an expert noting that plane tickets to Macau are just too expensive. Meanwhile, visitation to the city in February is blowing away expectations, hopefully setting the tone for the rest of the year.
What you need to know
- Morgan Stanley is highly optimistic about Macau’s recovery, boosting its FY23 EBITDA estimates for operators by 70 percent.
- Flight prices for Macau are too expensive, says an expert, suppressing demand and hindering the visitor market expansion.
- Macau February visitation is beating all estimates, topping January and setting a positive tone for growth in 2023.
On the radar
- Tabcorp sees 24% EBITDA rise in 1H23 on return of retail customers.
- Emperor: satellite casino operation agreement with SJM is ‘reasonable’.
- NagaWorld’s labor dispute remains unresolved.
- China welcomes EU’s phasing out of COVID testing requirements.
AGB Intelligence
MACAU
Morgan Stanley ups Macau operators’ FY23 EBITDA by 70 percent
China’s reopening and the resulting revenue and profit increase for Macau’s casinos has caused analysts at Morgan Stanley to raise their estimates of the six casino concessionaires’ 2023 EBITDA figures by 70 percent. Expectations are now for mass to account for 90 percent of gross gaming revenues and 80 percent of EBITDA.
Industry Updates
- Wazdan’s Gods Clash Network Promotion goes live.
- Original Konami slot games and systems technology arrive at IGA 2023.
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