Macau casinos followed up a weak Q3 with only incremental improvement during the Golden Week national holiday in China that started off Q4.
Macau saw a daily average of 26K arrivals for a total Golden Week tally of 182,152 visitor arrivals, according to Bank of America analyst Billy Ng. That level was only about 19% of the traffic seen in the pre-pandemic Golden Week holiday in 2019. Average hotel occupancy reached 80.6% vs. 48.1% in 2021 and RevPAR was up 24% from a year ago. Mass volume was estimated to be about 20% higher than the May holiday. Total gross gaming revenue is seen being reported at about 20% to 30% of the pre-pandemic level for Golden Week this year.
Heading into earnings season, Bank of America noted Q3 was a disappointment for Macau operators with gross gaming revenue -35% Q/Q, -70% Y/Y and -92% vs. 2019. The firm lowered EBITDAR expectations for the quarter on Las Vegas Sands ( LVS ), MGM Resorts ( MGM ), and Wynn Resorts ( WYNN ). However, the firm thinks LVS, MGM, and WYNN could be EBITDAR positive in Q4 given easing travel restrictions set to take effect.
Macau casino stocks: Melco Resorts & Entertainment ( NASDAQ: MLCO ), Wynn Macau ( OTCPK:WYNMF ) ( OTCPK:WYNMY ), Sands China ( OTCPK:SCHYY ) ( OTCPK:SCHYF ), MGM China ( OTCPK:MCHVF ) ( OTCPK:MCHVY ), Galaxy Entertainment ( OTCPK:GXYEF ), SJM Holdings ( OTCPK:SJMHF ) ( OTCPK:SJMHY ), and Studio City International ( MSC ).
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Macau Golden Week casino revenue disappoints but easing travel restrictions are on the way