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A leading Macau official is predicting daily visitation over the five-day Golden Week holiday will be 20 percent above the highest rates seen since the beginning of the pandemic.
Melco Resorts & Entertainment executives say they remain upbeat about the recovery in Macau and say the mass business is likely to hit 2019 level by the end of the year.
Macau is seeing more visitors, but they are still not spending as much in the city's casinos with gross gambling revenue largely flat in the latest week of April, Bernstein Research notes.
Macau's gross gambling revenue continued to show a small sequential improvement in the third week of April, with visitation hitting a 15-month high, according to Bernstein Research.
Macau’s Q1 gross gambling revenue breakdown clearly shows the mass market pulling ahead of the VIP sector, which is struggling to recover from the double-whammy of Covid and policy pressures in China.
Mass market baccarat accounted for 51 percent of Macau's gross gambling revenue in the first quarter of this year, according to figures released by the Gaming Inspection and Coordination Bureau.
Consensus estimates for Q1 earnings at Macau’s six operators may be too high, with corporate EBITDA likely to be lower than the prior quarter due to an uneven recovery and higher expenses, Morgan Stanley says.
Nagacorp said its mass market business continued to improve in Q1, gaining sequentially from the second half of last year and returning to about 99 percent of its Q1, 2020 levels before the pandemic took hold.
Galaxy Entertainment has become an investor favourite and is likely to boost its mass and premium mass market share as the Macau market recovers, Bernstein Research wrote in a note upping its target share price on the company.
Las Vegas Sands Chairman and CEO Rob Goldstein said the company "firmly believes" the Macau market will recover and will benefit in the future from infrastructure developments throughout the Greater Bay Area.