Macau casinos’ gaming revenue climbed 33% in February, slightly beating estimates in a sign that the sector’s recovery is lingering beyond the initial boost from China’s rapid reopening.
(Bloomberg) — Macau casinos’ gaming revenue climbed 33% in February, slightly beating estimates in a sign that the sector’s recovery is lingering beyond the initial boost from China’s rapid reopening.
Gross gaming revenue reached 10.3 billion patacas ($1.3 billion), according to data released by the Gaming Inspection and Coordination Bureau on Wednesday. The results were better than the median analyst estimate of a 31% year-on-year increase and compare with a 82.5% jump in January driven by a surge of visitors to Macau for the Lunar New Year. The February number was still down 59% from pre-pandemic levels.
Key Insights
- Macau’s casinos have recovered from the depths of last year’s pandemic woes as China’s abandonment of Covid Zero sparked a surge in visitors from the mainland, the city’s top source of tourists. Analysts surveyed by Bloomberg predict that annual gambling revenue could jump almost four-fold to 158 billion patacas, though that would still be just over half of 2019’s level.
- Macau, the only place in China where casinos are legal, saw 1.4 million visitor arrivals in January, about 40% of 2019’s level. The city will release February’s visitation data later this month.
- Despite a strong recovery driven by pent-up travel demand after Covid, spending could soon drop as other destinations like South Korea and Japan attract Chinese tourists, said Bloomberg Intelligence analyst Angela Hanlee.
- Over the rest of the year, an increase in the number of hotel rooms in Macau after the opening of SJM Holdings Ltd.’s Grand Lisboa Palace, Galaxy Entertainment Group Ltd.’s Galaxy Macau Phase 3 and Melco Resorts & Entertainment Ltd.’s Studio City Phase 2 will be the major growth driver for tourism after the pandemic, according to Hanlee.
Market Performance
- A Bloomberg Intelligence index of Macau casino operators rose 4.7% after the release of the gaming revenue data. It fell 6.8% in February after doubling since the start of November as casino companies obtained new licenses that allow them to continue operating in the city for 10 years. The benchmark Hang Seng Index dropped 9.4% in the same month.
Read More
- Macau Ends Outdoor Mask Wearing as Covid Situation Stabilizes
- Hong Kong-China Border Reopens as City Looks to Rebuild Economy
- Macau Plans to Give Away 120,000 Free Air Tickets This Year
- China, HK to End Covid Testing, Daily Quota For Border Feb. 6
- Macau’s Gaming Revenue Jumps 82.5% as China Travel Reignited
(Updates to add stock move in ‘Market Performance’ section)
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