• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Thursday 28 August 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

JP Morgan: Macau operators to report all-time high EBITDA margins in 2Q23

Ben Blaschke by Ben Blaschke
Mon 3 Jul 2023 at 19:02
Executive Action

Macau’s Cotai Strip

56
SHARES
1.4k
VIEWS
Print Friendly, PDF & Email

Investment bank JP Morgan says it expects Macau’s casino sector to record industry-wide EBITDA of US$1.7 billion for the three months to 30 June 2023, driven by all-time high margins.

In the wake of another strong GGR result in June, which saw the Gaming Inspection and Coordination Bureau (DICJ) report gross gaming revenues of MOP$15.21 billion (US$1.88 billion), JP Morgan analysts DS Kim and Mufan Shi said their EBITDA forecast represents a 47% improvement over the March 2023 quarter and would see profitability reach 73% of 2019 levels. However, most appealing is their expectation of EBITDA margins hitting 26% versus a historical peak of 24%, and potentially climbing even higher to 30% by 2025 thanks to “mix improvement and cost savings.”

“[The June 2023 quarter] also marks the first quarter in 3+ years that every operator (including SJM) generated handsome FCFs (free cash flows), with industry EBITDA (annualized at US$7 billion) more than 2x the burden from interest (around US$1.5 billion per annum) and capex (US$1.5 billion to US$2 billion per annum),“ they said

Kim and Shi have also upped their earnings estimates for the Macau gaming industry yet again, adding that current share price valuations are yet to catch up to Macau’s growth trajectory.

“We view Macau as one of very few sectors in China comfortably gliding through an estimate up-cycle against macro headwinds, and this ‘scarcity value’ doesn’t appear to be appreciated (at all) at the current price of 9x EV/EBITDA, which in fact is near the trough levels,” they said.

“This makes us very comfortable – even under a reasonable bear-case on macro – to look for hefty >50% potential upside … and we believe 2Q earnings should help drive this with all-time high margins and encouraging commentary.”

RelatedPosts

Solutions Showcase: LT Game – Game Time

Macau’s Paradise Ent sees revenue rise 19% in 1H25 but notes need for regional expansion as impact of satellite casino closure nears

Thu 28 Aug 2025 at 06:06
RGB International signs agreement to distribute KL Saberi and Atlas gaming machines

RGB sees sequential improvement in 2Q25 on revenues of US$22.4 million

Thu 28 Aug 2025 at 05:13
10 Years Ago: Next Stop Japan

Osaka-based forum to study the potential impact of MGM’s Japan IR on Korea’s casino industry

Wed 27 Aug 2025 at 05:40
Ainsworth flags 1H25 revenue growth on Australian market strength but Novomatic takeover facing opposition by family of founder

Ainsworth and Novomatic terminate scheme of arrangement following revolt by shareholder block, unconditional takeover offer remains

Wed 27 Aug 2025 at 05:17
Load More
Tags: casinosDS KimEbitdaGamingJP MorganMacauMargin
Share22Share4
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Solutions Showcase: ACP Gaming Limited – To the Max

Solutions Showcase: ACP Gaming Limited – To the Max

by Newsdesk
Thu 28 Aug 2025 at 10:38

Industry technology provider ACP Gaming will debut its X3 Max slot machine innovation at IAG EXPO, one of a number...

Solutions Showcase: Aristocrat – Game face on

Solutions Showcase: Aristocrat – Game face on

by Newsdesk
Thu 28 Aug 2025 at 10:37

Aristocrat will showcase an array of player-favorite content at IAG EXPO – along with an exciting Asian first! Aristocrat Gaming,...

Solutions Showcase: Aruze Gaming Global – Triple Treat

Solutions Showcase: Aruze Gaming Global – Triple Treat

by Newsdesk
Thu 28 Aug 2025 at 10:36

Aruze Gaming Global will unveil Triple Treasure Pot at IAG EXPO, highlighting the company’s bold and player-focused innovation strategy. Aruze...

Solutions Showcase: IDX Games – Innovations and engagement

Solutions Showcase: IDX Games – Innovations and engagement

by Newsdesk
Thu 28 Aug 2025 at 10:35

IDX Games will highlight how it can help enhance player engagement, increase revenue and create memorable experiences by showcasing a...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
HKUST
NWR

Related Posts

Crown Resorts found suitable to retain Melbourne casino license but China investigation ongoing

Crown Melbourne given two-year extension to deadline for implementation of mandatory carded play across table games

by Ben Blaschke
Thu 28 Aug 2025 at 06:47

Crown Melbourne will have an additional two years to expand its mandatory carded play technology to all table games after the Victorian government agreed an extension until December 2027. According to a report by The Sydney Morning Herald, legislation was...

Solutions Showcase: LT Game – Game Time

Macau’s Paradise Ent sees revenue rise 19% in 1H25 but notes need for regional expansion as impact of satellite casino closure nears

by Ben Blaschke
Thu 28 Aug 2025 at 06:06

Macau’s Paradise Entertainment has outlined its efforts to expand both its gaming equipment supply business and casino management experience across Asia after admitting it will suffer a material decline in revenue and profit once its contract to provide management services...

Analysts puzzled as combined market cap of Macau concessionaires falls back to 2022 COVID levels

Hong Kong Stock Exchange confirms delisting of LET Group and Summit Ascent scheduled for 1 September

by Newsdesk
Thu 28 Aug 2025 at 05:32

Following the recent announcement by Hong Kong’s LET Group Holdings and its subsidiary Summit Ascent Holdings that they were scheduled to be delisted at the end of this month, the Hong Kong Stock Exchange has confirmed that the listing of...

Aristocrat’s acquisition of ETG supplier Interblock said to have stalled over price

Aristocrat Gaming launches new “positive play” website

by Newsdesk
Thu 28 Aug 2025 at 05:30

Aristocrat Gaming has launched a new responsible gaming website designed to educate and enable players on smarter, more informed play. Part of the company’s “Know Your Max” campaign launched in 2023, the new website, KnowYourMax.com, provides a suite of positive...

Your browser does not support the video tag.


IAG

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • English