Macau gaming operators have recorded $1.95 billion of EBITDA for 4Q23, up 8 percent sequentially and 83 percent of 4Q19 levels, says Morgan Stanley.
In a summary of 4Q23 performance, the investment bank notes that six gaming operators’ results for the quarter reflect an ongoing recovery. In 4Q23, Macau’s visitation was 90 percent of 4Q19 levels, versus 83 percent in 3Q23, while airlift capacity into Macau International Airport was 70 percent recovered in December, respectively.
In a general observation, 4Q23 industry-wide GGR was 75 percent of 4Q19 levels. Companies reported recoveries relative to 2019 levels for mass GGR at 108 percent, VIP at 23 percent, and Slots at 87 percent.
In terms of market share on a hold-adjusted basis, Sands China led with 34.7 percent, followed by Galaxy Entertainment with 18.6 percent, Wynn Macau at 14.5 percent, MGM at 13.9 percent, Melco with 13.5 percent, and SJM at 4.8 percent.
On a sequential basis, Sands China was the largest market share gainer with its share increasing by 140 basis points. Galaxy Entertainment was the largest donor, with its share decreasing by 120 basis points.
Relative to 2019, MGM’s market share was 6 points higher, Sands China was 1 point higher, Wynn was flat, Galaxy and Melco were 3 points lower, and SJM was 1 point lower.
Mass GGR up 11 percent
According to the brokerage’s estimates, the Macau gaming regulator’s data show that mass table GGR for 4Q23 was $4.76 billion, 12 percent lower than the aggregate company-reported mass GGR of $5.42 billion.
In this context, mass GGR increased by 11 percent sequentially, versus the Gaming Inspection and Coordination Bureau’s (DICJ) reported 14 percent increase. In terms of share in the mass market, Sands maintained its leading position with 26.1 percent mass share, followed by Galaxy at 18.4 percent, MGM at 16.2 percent, Melco at 13.8 percent, Wynn at 13 percent, and SJM at 12.5 percent.
Relative to 2019, market share gains were the most for MGM. Galaxy and Wynn also recorded market share gains, while operators that saw decreases included SJM, Sands China, and Melco.
VIP GGR up 5 percent
Based on the data provided by DICJ, Morgan Stanley estimated that VIP GGR for 4Q23 was $1.55 billion, 106 percent higher than the aggregate company-reported VIP GGR of $753 million.
According to its calculations, VIP GGR increased by 5 percent sequentially. In terms of share, Wynn led the market at 20.6 percent, followed by Melco at 19 percent, MGM at 18.9 percent, LVS at 17.3 percent, Galaxy at 15.5 percent, and SJM at 8.7 percent.
On a quarterly sequential basis, Sands China was the only market share donor, while SJM saw the most market share gains, followed by Melco, Wynn, MGM, and Galaxy.
Relative to 2019, market share gains were strongest for MGM China, Wynn, and Sands China.
