2023-06-22 11:37:25 ET
Roth MKM expects a strong gross gaming revenue number from Macau in June with the easing COVID wave in China driving a traffic rebound.
Analyst Edward Engel said that investors were not convinced the deceleration in May GGR was COVID related, despite visa data from May showing Mainland IVS issuance from outside Guangdong declined. "As China's latest COVID wave continues to fade, we believe June GGR can surprise to the upside as Macau's rebound continues through June and into July/August's peak summer travel season," he noted. Commentary from from most Macau operators also suggested minimal GGR headwinds in May outside of the COVID-related travel issue.
Engel said industry GGR checks imply June's MTD daily GGR is trending +5% month-over-month and 15% above May's exit rate, with June GGR accelerating each week. The recent loosening of visa issuance is believed to be driving June's GGR reacceleration. In addiiton, local employment constraints are also easing each month. Roth MKN expects GGR to continue reacceerating into the July-August summer travel season.
Roth MKM remains bullish on Las Vegas Sands ( NYSE: LVS ) and Macau stocks and see shares continuing to rebound as May's deceleration proves transitory.
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Macau casino revenue is tipped by Roth MKM to impress this summer