Macao reports highest casino revenue since beginning of pandemic

Casinos in Macao in March reported their highest gross gaming revenue since January 2020 when the COVID-19 pandemic first began affecting travel and tourism in Asia.

A New York-based industry analyst said the $1.58 billion in winnings collected in March were higher than expected and a report is advising clients to invest in four casino companies, including three based in Las Vegas.

“We see the first-quarter 2023 earnings season as not only generating first-quarter upside but, more importantly, setting the stage for the second quarter of 2023 and beyond margin-upside-driven positive earnings revisions,” J.P. Morgan analyst Joe Greff said in a report to investors issued Sunday.

“Because of this, we think Macao stocks have the best risk-reward of anything in our coverage universe,” he said. “So, we are buyers of WYNN (Wynn Resorts Ltd.), MLCO (Melco Resorts and Entertainment Ltd.), MGM (MGM Resorts International) and LVS (Las Vegas Sands), each rated Overweight.”

Macao’s Gaming Inspection and Coordination Bureau on Sunday reported a 246.9 percent increase in gross gaming revenue compared with March 2022.

First-quarter total revenue, $4.28 billion, is nearly double what was collected in the first quarter of 2022 after strong showings in January and February as well as March.

Shares of Sands, which is expected to release its first-quarter earnings later this month, were up $1.27, 2.2 percent, to $58.72 a share in Monday trading. Wynn climbed $1.42, 1.3 percent, to $113.33, while MGM was down 17 cents, 0.4 percent, to $44.25 a share.

MGM and its MGM China Holdings Ltd. affiliate recently announced plans to open new marketing offices across Asia to encourage travel to Macao.

In a Friday filing, MGM China explained that the new marketing plan is designed to follow the Macao government’s directive to reduce reliance on customers from mainland China, Hong Kong and Taiwan.

The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Las Vegas Sands President and COO Patrick Dumont.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.