Macau’s casino industry is poised to equal pre-COVID EBITDA numbers by 2024, and exceed them in 2025, thanks to better gaming mix and lower operating costs, according to JP Morgan.

In a Tuesday note which saw the investment bank update its Macau models to reflect 4Q22 and FY22 earnings results, analysts DS Kim and Mufan Shi highlighted the improved profit profile of the SAR’s gaming industry following the collapse of junkets and lingering after-effects of COVID.

In-particular they point to considerable OPEX savings, with current OPEX estimated to be running at 70% to 75% of 2019 levels – likely rising to between 85% and 90% as operations ramp back up.