All six of Macau’s concessionaires should now be generating ample free cash flow after the June 2023 quarter – the first full quarter since Macau dropped most remaining border restrictions on 8 January – saw industry gaming revenues rise by 31% sequentially, according to JP Morgan analysts.
In a Sunday note following publication of Macau’s June GGR numbers over the weekend, analysts DS Kim and Mufan Shi said headline revenue had reached 62% of pre-COVID levels for the quarter with mass GGR estimated to be back over 85% and VIP at 24%. This, they added, “should be more than enough for every operator – that is, even including SJM – to generate ample free cash flow with 70%+ recovery in EBITDA for the industry.”
The June numbers also suggest mass GGR reached 90% of pre-COVID levels for the month “at a pace and magnitude that’s almost unthinkably strong when the border re-opened less than six months ago.
