Macau’s gross gaming revenue (GGR) has remained solid so far in March, with average daily revenue reaching about MOP703 million ($87.4 million) month-to-date, according to a recent investment memo from UBS.
Based on UBS channel checks cited in the memo, GGR averaged around MOP700 million ($87 million) per day over the past seven days (March 9th to 15th), broadly in line with the previous eight-day average of MOP706 million ($88.3 million). The bank said this places March month-to-date GGR roughly 11 percent higher year-on-year, though about 5 percent lower compared with the previous month.
Macau’s February GGR exceeded analysts’ expectations, totaling MOP20.63 billion ($2.57 billion), a year-on-year increase of 4.5 percent.
Against this strong February base, UBS noted that March performance across segments showed modest sequential declines. The mass market daily run-rate was down about 2 to 4 percent month-on-month, while VIP volumes fell by roughly 6 to 9 percent month-on-month. VIP hold during the period was estimated at around 3.2 to 3.5 percent.
For the full month, UBS forecasts Macau’s March GGR daily run-rate to average around MOP690 million ($86.2 million), up 9 percent year-on-year. This projection implies a daily run-rate of about MOP678 million ($84.7 million) for the remaining days of the month.
The investment bank also pointed to Macau’s growing pipeline of entertainment and event programming as a supportive factor for visitation and gaming demand. Major operators including Sands China, Galaxy Entertainment and Melco Resorts are leading event organization across the city’s integrated resorts, hosting concerts, sports events and entertainment shows throughout the year.
UBS said the Macau gaming sector is currently trading at relatively low valuation levels based on EV/EBITDA metrics. The bank maintained a positive outlook on the sector and identified Melco Resorts and Sands China as its top stock picks.
