Macau gaming revenue meets estimate on summer holiday boost
[MACAU] Macau’s gaming revenue rose 12.2 per cent in August, roughly meeting analyst expectations as the world’s biggest gambling hub wraps up its best-performing post-Covid summer off the bat of entertainment offerings that keep luring visitors.
Gross gaming revenue reached 22.2 billion patacas (S$3.6 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Monday (Sep 1). The result was just above the median analyst estimate of a 12 per cent year-on-year increase, and has returned to 91 per cent of the pre-pandemic level in 2019.
August is one of the peak tourist seasons for Macau, with many families from mainland China – the city’s largest source of tourism – visiting before the summer holiday ends. Casino resort operators have also stepped up entertainment, including theatre, concerts and sports events.
A major August music awards ceremony hosted by Tencent Music Entertainment Group featured popular artists from South Korea and China and helped drive a significant increase in visitation, Citigroup analyst George Choi wrote in a note.
Macau reported close to 3.5 million visitor arrivals in July, returning to 98 per cent of the pre-pandemic level in 2019. The city will release August figures later this month.
Operators have also rolled out more luxury hotel rooms, helping attract premium gamblers.
While an increase in mass-market tourists – who typically place smaller bets if they gamble – was expected to dilute the market, the average wager per player still increased 10 per cent year on year, according to a Citi survey conducted in early August. That indicates that premium gamblers’ appetite remained strong.
Some major tourist seasons are coming up for Macau in the coming months, including China’s week-long National Day holiday in early October. Outlook for the city’s gaming industry remains subject to China’s travel policies, border control enforcement and sentiment among a broader economic slowdown.
The Bloomberg Intelligence index of Macau casino operators rose 4.12 per cent in August, while the benchmark Hang Seng Index rose 1.23 per cent. BLOOMBERG
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