Labour Day Golden Week boosts May daily gaming revenues – Brokerages

Daily gaming revenues in May have increased considerably from previous months thanks to a Labour Day Golden Week boost and a steady growth in visitation, different brokerages indicated.

According to analysts from Sanford C. Bernstein, average daily gaming revenues during the first nine days of the month – which included the May 1-5 Golden Week – jumped 92 per cent from the last week of April to some MOP500 million (US$62.5 million), with a total of MOP4.5 billion reported during that period

Just the five days of Golden Week reported about MOP600 million in average daily revenues, with the average dropping to MOP350 million after the holiday period.

‘Golden Week daily average visitation was +25% from April average, but still equivalent to only 21 per cent of average daily May Golden Week visitation in 2019, analysts Vitaly Umansky, Louis Li and Kelsey Zhu indicated.

The period between May 1 and 5 has reported an average of 33,000 daily tourist entries – about 25 per cent of the volume reported in the same period in 2019 – with May 1 reporting the highest single-day visitation number since the pandemic started, almost 45,000.

Meanwhile, JP Morgan estimates mass and VIP market results are should return to 70 per cent and 25 per cent of 2019 Golden Week levels, respectively.

‘This reflects a strong rebound in the premium mass segment and extended length-of-stay, which in turn should alleviate market concerns on potential spill-over from VIP on premium mass,’ JP Morgan analysts noted.

The brokerage believes May will end up with a total MOP10 billion in gross gaming revenues, or 40 per cent of 2019 levels, with a growth rate expected to further pick up in peak travel season in July and August and reach as high as MOP11 billion to MOP12 billion, or 50 per cent of 2019 levels

At the same time, Bernstein estimates that May will end up with a 50 per cent month-to-month jump in gross gaming revenue thanks to continued visitation growth and the Golden Week after April ended with some MOP8.4 million in total revenue.

‘Macau should continue to experience headwinds during 1H 2021, but we see strong GGR improvement beginning in 2H as COVID-related travel constraints begin to fall away,’ the group added.

Previously a Fitch Ratings senior consultant told Macau News Agency the rating agency still believes the SAR is en route to achieve at least half of the gaming revenue volume reported in 2019.