The 39 casinos in Macau could at long last be about to begin recovering from their coronavirus-induced downturns after seeing aggregated fourth-quarter mass-market gross gaming revenues reach the ‘highest level on record.’
According to a report from Inside Asian Gaming, this is the view of financial services giant JP Morgan even as the former Portuguese enclave saw its combined gross gaming revenues for the final three months of 2020 drop by almost 70% year-on-year to stand at approximately $2.73 billion. Rather than be downhearted, the investments firm purportedly pointed to the fact that mass-market games had accounted for about 75% of this finishing tally, which it proclaimed had represented ‘by far the highest level on record.’
JP Morgan analysts Derek Choi and DS Kim reportedly detailed that casinos in the former Portuguese enclave had also chronicled daily average gross gaming revenues during the fourth quarter of around $29.67 million with VIP receipts having plummeted by 80% year-on-year. The specialists moreover purportedly proclaimed that mass-market receipts had fallen by 63% over the course of the same three-month period although local operators should nevertheless be able to enter positive earnings before interest, tax, depreciation and amortization territory courtesy of ‘higher mass mix and relatively resilient non-gaming as well as cost rationalization’ factors.
Reportedly read a statement from Choi and Kim…
“This was well-publicized from last earnings already but it’s still a comfort to see them no longer printing big losses.”
Citing official information from the Gaming Inspection and Coordination Bureau regulator and the source explained that Macau saw its aggregated gross gaming revenues for December decrease by 65.8% year-on-year to stand at slightly over $978.89 million. Finally, it pronounced that local casino operator MGM China Holdings Limited had gained the most market share during the 31-day month owing to its premium-mass offering while compatriot SJM Holdings Limited was the biggest loser owing to its supposed reliance on VIP players.