Macau GGR back to 50% of pre-COVID levels in Golden Week: JP Morgan

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Macaus gaming operators recorded their best week since the earliest days of 2020 during May Golden Week, with gross gaming revenues clawing back to around 50% of pre-COVID-19 levels according to JP Morgan analysts.

In a Thursday note, JP Morgans DS Kim, Derek Choi and Livy Lyu described GGR figures for the holiday period as broadly satisfactory led by a resurgence in the mass segment.

While visitation only reached around 25% of 2019 May Golden Week levels, GGR was between 40% and 50% including a recovery to between 60% and 70% for mass GGR compared with 20% to 25% for VIP.

Luxury retail sales were back to pre-COVID-19 levels, with some tenants seeing double digit growth over 2019 Golden Week.

JP Morgan said that preliminary estimates suggest a daily GGR run rate of MOP$400 million to MOP$500 million (US$50.0 million to US$62.5 million) over the past week, compared with recent run rates of MOP$270 million to MOP$280 million (US$33.7 million to US$35.0 million) per day, reflecting pent-up demand.

Weekly GGR data from industry consultants is scheduled to come out onMonday for the first nine days of May, the analysts state.

The data will encompass both holiday (May 1-5) and seasonal lull (May 6-9), hence will likely come in at MOP$330 million to MOP$380 million (US$41.2 million to US$47.5 million) per day.

This in turn suggests May should be able to print GGR of MOP$9.5 billion-plus (US$1.2 billion), a tad better than consensus expectations.