Morgan Stanley reports increased spending by premium-mass punters compared to pre-Covid era
Thursday 21 de December 2023 / 12:00
2 minutos de lectura
(Macau).- Despite challenging market conditions, the gaming industry in Macau has continued to thrive, driven by robust demand from high-end gamblers, recent research by Morgan Stanley suggests.
According to analysts Praveen K Choudhary and Gareth Leung CFA, premium-mass gamblers are spending more per head, surpassing the pre-pandemic level.
Surprisingly, high-end customers are visiting Macau more frequently, even in spite of a sequential decline in consumer spending and overall macroeconomic trends in China.
Additionally, younger gamblers “in their 30s” are displaying similar spending patterns to their older counterparts in their 40s and 50s, the analysts claimed.
On a different note, the analysts expect both capital expenditure and operational expenditure to ramp up further in 2024.
“We expect Macau gaming companies to follow the Macau government and increase wages by 2 to 3 per cent in 2024,” wrote the analysts. “Yet, we think the 13th month salary bonus is likely to remain intact.”
Operational expenditure, or opex, associated with non-gaming investments and potential competition for gaming hosts and sales could place “upward pressure” on expenses.
In particular, Sands China stands out with 76 per cent of its committed investment focused on capex, while other operators may need to allocate more towards opex, which could impact their margins.
When it comes to the mass hold rate, the rate improved in the fourth quarter of 2023, accompanied by an increased volume. Macau’s mass table hold rate, which remained flat in the third quarter of 2023 compared to the first half of the year, stood at 23.4 per cent, slightly below the 2019 level of 24.7 per cent.
Wynn and MLCO are expected to benefit from the improved mass hold rate in the fourth quarter of the year.
Categoría:Gaming
Tags: Sin tags
País: Macao
Región: Asia
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