Kindamorphic
Macau’s gross gaming revenue rose 14.8% year-on-year in August to 19.75 billion patacas ($2.5 billion), beating the consensus estimate of a 13.2% increase. Macau’s GGR rose 6.2% month-on-month and stood at approximately 80% of the 2019 pre-pandemic level.
On a year-to-date basis, Macau's GGR rose 33.4% year-on-year to 152.1 billion (19 billion U.S. dollars) as of Aug. 31, according to data from the Gaming Inspection and Coordination Bureau.
JP Morgan noted that Macau's GGR growth rate in early August reflected relatively strong mass demand during the summer holidays. Notably, demand from mainland Chinese visitors has been strong, despite macroeconomic pressures. Steady gains in the mass market segment helped offset weaker sentiment in the VIP segment. In terms of market share, Bank of America highlighted that Galaxy Entertainment (OTCPK:GXYEF) gained market share, followed by Melco Resorts (NASDAQ:MLCO) and SJM (OTCPK:SJMHF), while Wynn Macau and MGM China were on the losing end.
Dividend Observation: Seaport Research Partners analyst Vitaly Umansky has predicted that Sands China could restart its dividend in 2025. “The ongoing recovery in Macau, where Sands China is the largest operator by market share, could support the resumption of the dividend. The gaming company has compelling reasons to renew the payouts,” he warned. Meanwhile, MGM China Holdings Limited (OTCPK:MCHVF) (OTCPK:MCHVY) revealed in a filing in Hong Kong last week that it expected to spend just over HKD1.34 billion (US$172.0 million) on a special dividend paid at HKD0.353 per share. The company expects the dividend to be paid on October 4. “The board has decided to declare the special dividend after further consideration of the group’s latest overall financial position, existing cash flow, capital requirements going forward and other factors that the board deemed relevant,” the casino operator stated. MGM China (OTCPK:MCHVF) (OTCPK:MCHVY) began paying dividends again earlier this year, following a multi-year period around the pandemic when shareholder payouts were halted.
Casino stocks related to Macau: Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), Las Vegas Sands (LVS), MGM China (OTCPK:MCHVF), (OTCPK: MCHVY), MGM Resorts (New York Stock Exchange: MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF), (OTCPK:SJMHY), Melco Resorts & Entertainment (MLCO) and Studio City International (MSC).
