Renowned investment bank JP Morgan reveals that the Macau gaming industry generated $77.9 million in daily gross gaming revenues last week. As reported by Inside Asian Gaming (IAG), the bank’s analysts consider that the Macau market conditions are featured by a strong underlying demand to reportedly show ”no signs of slowdown.”
$1.85 Billion in GGR:
As IAG reports, JP Morgan has come up with the Macau gaming figures earlier today to testify about the strong market activity likely to extend into the forth consecutive month of 2024. Indeed, the analysts informed that the city generated around $1.85 billion in gross gaming revenues for the first 24 days of March. As reported by IAG, the revenue level aggregated from 1 March to 24 March 2024 implies an average daily score of around $77.0 million to represent only between 1 % and 2% lower average daily revenue figure of $78.2 million achieved in January and February 2024.
Terminating ‘Historical Trend”:
JP Morgan reportedly compares this data with the ”historical trend of -4% month-on-month” usually experienced by Macau casinos in the month of March. Such an accelerated activity in a usually slower period additionally contributes to the city’s overall gross gaming revenue. As reported by IAG, the mass gaming market current growth rate stands at around 110% higher level than the pre-pandemic figures.
But, the March mass market revenue to-date reportedly compares to the recently seen 104% growth tendency over the pre-pandemic levels. According to GGRAsia, the institution commented: “This compares with a 104-percent recovery in fourth-quarter 2023, suggesting mass gaming demand can grow by +3 percent to 4 percent quarter-on-quarter in first-quarter 2024, to outperform the historical seasonality of +2 percent quarter-on-quarter.”
As mass market reportedly experiences an even stronger activity in 2024, VIP segment stagnates at around 20% lower recovery ranges in an attempt to recover from past market disturbances. However, other segments are driving the industry forward. Based on the $77.0 million daily gross revenues generated in Macau in the first 24 days of the month, JP Morgan analysts, DS Kim, Mufan Shi and Selina Li, expect that the casinos in the city will generate around $2.36 billion by the end of March 2024, as reported by IAG.
Exceeding Q4 2023 by 5 %:
The same source reports that the institution expects that the gross gaming revenues generated in the first quarter of 2024 will exceed the Q4 2023 result by around 5% to set a new record in the Macau gaming industry. According to GGRAsia reports, JP Morgan has announced the soaring trend, stating: “We continue to model March to print a GGR of circa MOP19 billion[$2.36 billion], which will drive first-quarter GGR to grow 5 percent quarter-on-quarter – or over 60 percent year-on-year – to be yet another post-pandemic highs.”