{"id":321765,"date":"2024-06-05T13:24:58","date_gmt":"2024-06-05T18:24:58","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=321765"},"modified":"2024-06-05T14:03:20","modified_gmt":"2024-06-05T19:03:20","slug":"macau-casino-revenue-estimates-could-be-too-conservative","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/","title":{"rendered":"Macau Casino Revenue Estimates Could Be Too Conservative Says Analyst"},"content":{"rendered":"

Following a strong showing in May in which Macau concessionaires posted the best monthly gross gaming revenue (GGR) tally since before the start of the coronavirus pandemic, some analysts believe revenue estimates for operators there could be too conservative.<\/p>\n

\"Macau
The Galaxy Macau casino resort on the Cotai Strip. An analyst believes GGR estimates there are too restrained. (Image: Bloomberg)<\/figcaption><\/figure>\n

Last month, the six Macau concessionaires combined to generate $2.5 billion in GGR<\/a>, representing a 9% sequential gain, a 30% year-over-year jump, and a figure that was 22% below the May 2019 figure. Analysts expected May 2024 GGR to come in at 24% off the same period five years earlier. In a new report to clients, Macquarie analyst Chad Beynon noted that with a strong May in the books, Wall Street\u2019s GGR estimates for Macau operators may be too restrained.<\/p>\n

Linda Huang, Macquarie’s Head of Asia Consumer Research, noted in a recent report that the seq decline in May vs 2019 was likely attributable to the quarter-to-date promotional environment (eg, referral player segment) becoming more rational, which would benefit Galaxy and Sands China. Bottom line, we believe the upward trajectory for Macau GGR growth remains intact post May’s result,\u201d wrote the analyst.<\/p><\/blockquote>\n

Annual visits to the Asian casino center trended higher in the decade ending 2019, peaking at 39.40 million in that year, but in 2023, that number was 28.21 million. That implies there\u2019s still a long runway for Macau operators to get back to pre-pandemic norms and, if that goal is achieved, Macau gaming equities could benefit<\/a>.<\/p>\n

Macau Casino Revenue: Don\u2019t Expect June Gloom<\/h2>\n

In what could be beneficial to some casino stocks — an asset class with a propensity for sagging in June<\/a> — expectations are in place for another strong GGR showing this month in Macau.<\/p>\n

\n

Beynon forecasts Macau concessionaires will generate, in aggregate, $2.3 billion in GGR this month, implying second-quarter GGR of $7.2 billion. Should that projection prove accurate, it would represent a 22% decline from the same period in 2019.<\/p>\n<\/div>\n

Beynon notes operators that are pivoting to mass-market clients and nongaming amenities could benefit. Wynn Macau, a unit of Wynn Resorts (NASDAQ: WYNN), has strong nongaming competencies and is decreasing its dependence on VIPs.<\/p>\n

\u201cWith additional operator revenue growth in mass and nongaming, we model margin upside despite higher opex concessionaire commitments,\u201d notes Beynon. \u201cOverall, we believe consensus remains conservative, particularly for WYNN, which we believe can gain share. We continue to be bullish on the long-term growth prospects for Macau and rank Macau.\u201d<\/p>\n

Bullish on MGM, Sands, Too<\/h2>\n

In addition to Wynn, Las Vegas Sands (NYSE: LVS) and MGM Resorts International (NYSE: MGM) are the other US-based Macau operators. Beynon is bullish on both names along with Wynn. He rates all three stocks \u201coutperform\u201d with price targets implying average upside of 32.3%.<\/p>\n

That\u2019s particularly noteworthy for Sands investors because that company currently has no exposure to Las Vegas unlike rivals MGM and Wynn.<\/strong><\/p>\n

\u201cAs a reminder, after factoring in minority ownership, casino revenue is comprised as follows: WYNN \u2014 39% Macau, 44% Vegas, 17% Regionals; LVS \u2014 57% Macau, 43% Singapore; and MGM \u2014 11% Macau, 62% Vegas, 27% Regionals,\u201d concluded Beynon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a strong showing in May in which Macau concessionaires posted the best monthly gross gaming revenue (GGR) tally since before the start of the coronavirus pandemic, some analysts believe revenue estimates for operators there could be too conservative. Last month, the six Macau concessionaires combined to generate $2.5 billion in GGR, representing a 9% […]<\/p>\n","protected":false},"author":46,"featured_media":308961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[81913,81903],"acf":[],"yoast_head":"\nMacau Casino Revenue Estimates Could Be Too Conservative<\/title>\n<meta name=\"description\" content=\"Macau Casino Revenue Estimates Could Be Too Conservative, Says Analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macau Casino Revenue Estimates Could Be Too Conservative\" \/>\n<meta property=\"og:description\" content=\"Macau Casino Revenue Estimates Could Be Too Conservative, Says Analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-05T18:24:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-05T19:03:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/4000.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/\",\"url\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/\",\"name\":\"Macau Casino Revenue Estimates Could Be Too Conservative\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/4000.jpg\",\"datePublished\":\"2024-06-05T18:24:58+00:00\",\"dateModified\":\"2024-06-05T19:03:20+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Macau Casino Revenue Estimates Could Be Too Conservative, Says Analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-revenue-estimates-could-be-too-conservative\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/4000.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/4000.jpg\",\"width\":1200,\"height\":800,\"caption\":\"The Galaxy Macau casino resort on the Cotai Strip. 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