Mass gaming revenue accounted for around 75% of Macau’s GGR in the three months to 31 December 2020, “by far the highest level on record” according to JP Morgan analysts.
In a Monday note following publication of December GGR numbers by the Gaming Inspection and Coordination Bureau (DICJ) last week, JP Morgan’s DS Kim and Derek Choi pointed to a 70% year-on-year decline for the quarter to MOP$237 million per day.
However, they calculate VIP taking the brunt of the COVID-19 induced damage, down 80% year-on-year in 4Q20 compared to mass GGR at around 63% down versus 4Q19 levels. December, they add, saw VIP down by 75% to 80% and mass by 60%.
While the stark decline in VIP play has directly resulted in a greater contribution by the mass segment, Kim and Choi note this is positive for operators who “should print positive EBITDA at this level thanks to higher mass mix and relatively resilient non-gaming (retail rent), as well as cost rationalization.
“This was well-publicized from last earnings already, but it’s still a comfort to see them no longer printing big losses,” they said.
By operator, JP Morgan names MGM China as the biggest gainer of market share due to solid performance in premium mass, while SJM was the biggest share loser given its limited exposure to premium mass.
As reported by IAG, Macau recorded a 65.8% year-on-year GGR decline in December to MOP$7.82 billion (US$977.5 million)– the highest figure since January 2020.
