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Melco Resorts & Entertainment and Wynn Resorts are expected to outperform their Macau rivals in the next six months due to their larger exposure to the premium mass market, according to Bernstein Research.
There have been some positive reports this week, talking about optimism over Macau’s medium-term future, led by the premium mass and mass markets.
Macau operators focused on the premium mass market are likely to significantly outperform in the short term, while the VIP sector may take another two years to recover, according to Bernstein Research.
The simplification of visa procedures for Chinese visitors is key to drive a more robust recovery in Macau, where this year’s Golden Week figures proved disappointing, according to a note from Bernstein Research.
The casino industry in Macau grew from US$2.77 billion in revenues in 2002 to over US$45 billion in 2013. Then, in 2015, revenues fell precipitously to under US$29 billion, a fall from which casinos are still reeling.
VIP and premium mass customers made up of only one percent of visitors in 2018, yet drove around 70 percent of total GGR, according...
Emperor Entertainment Hotel Limited, the gaming arm of Emperor Group, said it will be looking to expand its share of the premium mass market...
None of Macau’s operators, or junkets, are showing confidence that VIP trends or demand are organically improving, despite positive macro leading indicators, analysts at Morgan Stanley wrote after a recent trip to the territory.
Despite its reputation as a luxury brand, Wynn Macau is outperforming the market in the premium mass segment, delivering above average margins, Bernstein Research...
Shares in Macau’s casino operators may rally in the short term following better-than-expected November gross gambling revenue, an easing in trade tensions between the U.S. and China and increased visitation after the opening of a bridge between Hong Kong, Macau and the mainland, Morgan Stanley forecasts.