Kindamorphic
Macau gross gaming revenue rose 14.8% year-over-year in August to 19.75 billion patacas ($2.5 billion) top beat the consensus estimate for a rise of 13.2%. Macau GGR was up 6.2% on a month-over-month and came in at about 80% of the pre-pandemic level of 2019.
On a year-to-date basis, Macau GGR was up 33.4% year-over-year to 152.1 billion ($19 billion) through August 31, according to data from the Gaming Inspection and Coordination Bureau.
J.P. Morgan noted the Macau GGR run-rate in early August reflected a relatively solid mass demand into the summer holidays. Of note, demand from mainland Chinese visitors has been strong, despite macroeconomic pressures. The steady gains in the mass market segment helped to offset weaker sentiment in the VIP segment. In terms of market share, Bank of America highlighted that Galaxy Entertainment (OTCPK:GXYEF) gaining market share followed by Melco Resorts (NASDAQ:MLCO) and SJM (OTCPK:SJMHF), while Wynn Macau and MGM China were on the losing end.
Dividend watch: Seaport Research Partners analyst Vitaly Umansky tipped 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 be supportive of dividend resumption. The gaming company has compelling reasons to renew payouts,” he advised. Meanwhile, MGM China Holdings Limited (OTCPK:MCHVF) (OTCPK:MCHVY) disclosed in a Hong Kong filing on last week that it expected to spend just above HKD1.34 billion ($172.0 million) on a special dividend paid at HKD0.353 per share. The company expects the dividend will be paid on October 4. “The board has resolved to declare the special dividend after further consideration of the group’s latest general financial position, existing cash flow, capital requirements going forward and other factors that the board considered relevant,” stated the casino operator. MGM China (OTCPK:MCHVF) (OTCPK:MCHVY) started paying dividends again earlier this year, following a multi-year period around the pandemic when the payouts to shareholders were halted.
Macau-related casino stocks: 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 (NYSE:MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF), (OTCPK:SJMHY), Melco Resorts & Entertainment (MLCO), and Studio City International (MSC).
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