Macau GGR Bounces to US$1.93 billion in May to Mark 366% Growth

Macau gaming industry seems to experience a complete recovery in 2023, according to the latest figures. As Inside Asian Gaming reports, Macau operators generated a total of MOP$15.57 billion (US$1.93 billion) in gross gaming revenues in May to record the fifth consecutive month of growing revenues this year following the re-opening of the region of January 8, 2023.

The source reports that the Gaming Inspection and Coordination Bureau (DICJ) informed that the revenue figure achieved by the Macau gambling industry in May 2023 was 366% higher than the one recorded in May 2022 when the region saw the GGR of only MOP$3.34 billion (US$414 million).

Rising Revenue Trend:

However, the revenue level reached in May was also 5.7% higher than the industry’s performance from April 2023 when Macau operators generated MOP$14.72 (US$1.82 billion) in gross revenues to set the record GGR level since January 2020. The May figure therefore represents a continuation of the month-over-month rising revenue trend and sets the highest revenue figure in 2023 to date.

At the same time, the figure significantly contributes to the Macau’s GGR aggregated over the first five months of 2023 to MOP$64.93 billion (US$8.05 billion) year-to-date, which represents a 173% higher value on a year-on-year basis, according to Inside Asian Gaming.

The industry’s strong performance in May also marks the extension of the best first quarter for the Macau casino industry in the last three years, with April and May revenue levels testifying about the even stronger second quarter 2023.  After being heavily affected by COVID-19 pandemic and the related restrictions, the region re-opened its gaming facilities on January 8, 2023 and the revenue figures almost doubled already in January 2023 to keep on growing to the 366% year-on-year levels seen in May 2023.

Booming Arrivals:

Since January 8, 2023, the growth has been tremendously supported by arrivals from mainland China, Hong Kong, and overseas. It was additionally boosted in May with the May Day festive week when the region reportedly hosted almost 500,000 visitors and recorded the hotel occupancy growth of as much as 85%.

Stock Volatility:

But despite the strong performance, Macau casino stocks have recently experienced certain volatility in the Hong Kong Stock Exchange, according to GGRAsia. During a conference session at the Global Gaming Expo (G2E) Asia 2023 Special Edition: Singapore, Angela Hanlee, an analyst at Bloomberg Intelligence, told the source that Macau gaming revenue numbers have been beating forecasts every month.

She reportedly addressed Macau operator share prices and said that investors were “not rewarding the beat at all.” According to Hanlee, the fundamental factors for the share price growth are not being significantly driven at the moment.