CNY mass gaming revenue returns to 60-70 pct of 2019 levels – JP Morgan

Mass gaming revenue in Macau over the Lunar New Year holiday may have rebounded to 60-70% of the same period in 2019, with ‘revenge gambling’ and ‘pent-up demand’ behind the recovery, it said. Securities firm JP Morgan said on December 12, 2019. Recent report.

JP Morgan analyst DS Kim noted that SAR’s traffic and play levels “felt like we were back three or four years ago”, with a minimum bet of HK$500 (US$63.8) on the gaming floor. HK$2,000 was wagered on the main floor and HK$3,000 to HK$5,000 was wagered on the Premium Mass Lounge.

Kim said the recovery in mass gaming revenues during the Lunar New Year period was “nearly double what visitor numbers indicate”, a number that was “very clear” and well above market expectations. added.

The 2019 Lunar New Year period generated one of the highest mass gaming revenues in Macau’s history, the report cited. According to Gaming Inspection and Coordination Bureau (DICJ) data, Macau’s total gaming revenue in February 2019 was MOP25.37 billion.

The investment bank further added that while the market views recent visitor numbers as “disappointing,” the pace of recovery associated with casino patronage appears to be faster than that of visitor numbers, with gaming revenues He recovers faster than casino patrons.

Added to the stronger recovery was the length of visitor stays, which analysts said was longer than pre-Corona. During the festivities, Kim said “revenge gambling” and “pent-up demand” were observed as “core” patrons returned.

Macau welcomed the arrival of approximately 451,000 tourists during the seven-day Lunar New Year Golden Week from January 21 to 27. Recorded during the 2019 Chinese New Year Golden Week before the pandemic.

Brokerage analysts are “remaining bullish” on Macau’s gaming industry, believing earnings expectations and valuations, as well as the stock price, still have plenty of headroom.

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