MLCO - Macau casino revenue soars in July to highest level since pandemic

2023-08-01 06:53:52 ET

The Macau Gaming Inspection and Coordination Bureau reported gross gaming revenue in the gambling region rose 4,086% year-over-year in July to $16.6B patacas ($2.07B) against a soft comparable to last year when travel restrictions were in place for several weeks. The consensus-topping tally also represented a 9.6% increase from June and was the highest since the pandemic, although it still fell about 30% below the pre-pandemic level of gross gaming revenue in July of 2019.

For the first seven months of 2023, Macau gross gaming revenue was up 263% year-over-year to $96.80B patacas. The return of live performances has boosted traffic in Macau over the last two months. The Macau hotel occupancy rate reached 89% in early July and is expected to stay around that level during the vacation season.

Looking ahead, Roth MKLM analyst Edward Engel believes the easing COVID wave in China is driving a general rebound in Macau GGR. With an eye on the upcoming earnings reports in the sector, Morgan Stanley analyst Praveen Choudhary expects Q2 to be the first quarter where mass revenue and EBITDA are closer to pre-COVID levels. The firm has an attractive view of the sector in general, with spending per visitor trends improving, a heavy concert calendar for Q3, and net debt levels on the mend. Gaming revenue for the full year is forecast to be about 65% of the pre-COVID level.

Shares of Melco Resorts & Entertainment Limited ( NASDAQ: MLCO ) rose 2.79% in premarket trading on Tuesday and Melco Resorts & Entertainment Limited ( MSC ) was 2.68% higher. Wynn Resorts ( WYNN ) gained 1.62% , but Las Vegas Sands ( LVS ) was off 0.40% .

Macau 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 ( MGM ), Galaxy Entertainment ( OTCPK:GXYEF ), SJM Holdings ( OTCPK:SJMHF , OTCPK:SJMHY ), Melco Resorts & Entertainment ( MLCO ), Studio City International ( MSC ).

More on casino stocks:

• Las Vegas Sands: Hold, Sell, And Buy Later Case
• View the growth metrics on Melco Resorts & Entertainment
• View the growth metrics on Las Vegas Sands
• Dig into the Seeking Alpha Quant Rating across the casino sector

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