The first half of the year ended well for Macau’s gaming operators, with analysts at CreditSights – under the Fitch Group – noting that gross gaming revenue in June ‘far exceeded market expectations’.
According to official data, the June figure topped out at MOP21.06 billion ($2.61 billion), up by 19 percent yearly, ‘largely on the back of strong visitations thanks to high profile concerts during the month’.
This drove the 1H25 results up by 4 percent yearly, with analysts Nicholas Chen and David Bussey noting that VIP GGR was up by 11 percent yearly, while mass GGR ‘lagged’ – rising by just 2 percent year-on-year.
Looking back at the month itself, the analysts note that GGR per visitor was up by 5 percent yearly, to MOP7,286 ($905), outpacing the year-on-year growth in visitation, ‘potentially suggesting that there were more premium punters within the casino goers mix during the month’.
Visitation in the last month of 1H25 totaled 93 percent of the same month in 2019, with Chinese visitors reaching 95 percent of those levels. Official data show Macau welcomed 19.22 million visitors in 1H25, up by nearly 15 percent yearly.
Of particularly highlight were the concerts by Cantopop legend Jacky Cheung and American electronic duo The Chainsmokers as contributors to the influx in the final month of the half-year.
The analysts note that the average monthly GGR of MOP19.8 billion ($2.46 billion) ‘is still meeting the MOP19 billion ($2.36 billion) level required to reach the FY25 GGR target’. In a previous report, CreditSights indicated that the Macau government’s decision to revise down its FY25 GGR target to MOP228 billion ($28.4 billion) from MOP240 billion ($30 billion) did not come as a ‘complete surprise’.
Satellite casino closures not a concern
As the closure of Macau’s satellite casinos by year end looms, ‘we do not think the closures is likely to have a significant impact on the sector,’ note the analysts.
‘We opine that the affected gaming tables […] would likely be re-circulated back into operation at the operators’ other facilities.
On Monday, concessionaire SJM indicated that it was going to close its Casino Grandview, in Taipa, ahead of time (on July 30th) – with plans to relocate the relevant gaming tables to its other properties.
SJM has announced its intention to maintain two of its nine satellite casino operations – at Ponte 16 and L’Arc, with the other seven to close by December 31st.
According to the new report, ‘Fitch saw no rating impact for SJM and limited impact on its credit profile’, given the reallocation of its tables.
Meanwhile, Melco, which operates one satellite casino – Grand Dragon, had previously announced that it would cease operations at the property by the end of the year, alongside the closure of three of its Mocha Clubs venues. The analysts also opine that they saw ‘limited impact for Melco’ due to the closures.
