Macau’s gambling revenue in December is on track to exceed expectations, according to a recent memo from JP Morgan Securities (Asia Pacific) Ltd. The gross gaming revenue (GGR) in the first 17 days of the month reached MOP542 million per day, which is MOP22 million more than the previous week.
The analysts from JP Morgan had anticipated a revenue of MOP9 billion (US$1.12 billion) in the first 17 days of December, but the actual results surpassed their expectations. The mass GGR is reported to be “running at around 100 percent,” indicating a strong performance for Macau’s gaming industry.
Despite ongoing challenges to return to pre-pandemic levels, Macau’s GGR is showing significant improvement. VIP GGR levels, while not reaching the levels before the COVID-19 pandemic, are at “mid- or high-teens,” according to authorities.
Looking at the broader picture, Macau had a strong third quarter with a 7.3% increase in total GGR compared to the previous quarter, reaching MOP48.1 billion. Baccarat play for the mass market remains the most popular gaming option, generating 61% of the total GGR, or MOP 29.77 billion.
As the year comes to a close, analysts expect the GGR in December to reach about MOP17 billion, or MOP 550 million per day. The expected growth in the fourth quarter is estimated to be around 8 percent quarter-on-quarter, which could contribute to an 8-10 percent growth in industry earnings before interest, taxation, depreciation, and amortization (EBITDA).
Overall, the results for Macau’s gaming industry in December and the previous quarter point to a positive trend, with the potential for further growth in the remaining days of the month.