Macau’s gaming revenue for June plummeted to its lowest level in eight months, raising concerns among industry insiders. The revenue stood at MOP17.70 billion, which, although a 16.4% increase from the MOP15.21 billion recorded in June of the previous year, represents the most modest growth the region has seen in 2024 thus far.
The June figure also marked a significant 14.1% decrease compared to the MOP20.19 billion reported in May. May had been a standout month, registering the highest monthly revenue since pre-pandemic times, bolstered by the Labour Day Golden Week holiday—a period traditionally associated with a surge in visitor numbers.
Analysts had forecast a weaker performance for June, citing historical trends. According to them, June has always been one of the weakest months for Macau’s gaming sector. Despite their cautious outlook, there was still a general consensus that revenues for the month would rise by at least 17.5% year-on-year, a target which fell short.
The Covid-19 pandemic wreaked havoc on Macau’s gaming industry, significantly impacting revenue streams as stringent safety measures effectively barred visitors from entering the Special Administrative Region. However, the lifting of these restrictions in January 2023 had initially sparked a robust recovery, with monthly revenues consistently registering double-digit growth figures.
For the year-to-date, total revenue in Macau for the first half of 2024 stands at MOP113.75 billion. This represents a substantial 41.9% increase from the MOP80.14 billion recorded for the same period in 2023. The first six months’ performance paints an optimistic picture despite the setback in June.
Industry attention is now turning to the leading casino operators in Macau, who are set to report their half-year results later this month. Indicators suggest robust growth for giants like Las Vegas Sands, Melco, SJM, and Wynn, buoyed by strong performance in the first quarter.
Las Vegas Sands had a remarkable Q1, reporting a 39.6% revenue surge to US$2.96 billion. Of this total, a significant $1.81 billion was generated from its Macau operations, a 41.
.6% increase from the previous year. This indicates the recovery in Macau is stronger compared to other regions.
SJM Holdings, which operates exclusively in the Macau market, also enjoyed a prosperous first quarter, with revenues spiking by 73.0% to HK$6.90 billion. Similarly, Melco Resorts & Entertainment reported a 55.2% increase in its Q1 revenue, totaling $1.11 billion. Melco’s properties in Macau saw marked growth, with its City of Dreams venue leading at $550.9 million in revenue for the quarter.
MGM Resorts International also enjoyed record-breaking success in Macau. Its China revenue reached an unprecedented $1.06 billion in Q1, contributing to a group-wide revenue increase of 13.2%, taking the total to a record $4.83 billion.
Wynn Resorts posted a 30.8% rise in first-quarter revenue, totaling $1.86 billion, propelled primarily by its Macau operations. Revenue from this region amounted to $998.6 million, accounting for a substantial 53.6% of the group’s total for Q1. This strong performance reaffirmed Macau’s critical role in Wynn’s overall revenue generation strategy.
The recent downturn in June’s revenue notwithstanding, Macau’s gaming sector remains on an upward trajectory for the year. The market’s rapid recovery post-pandemic and the consistent double-digit growth observed earlier in 2024 offer a cushion against the June revenue slump.
As the leading casino operators prepare to unveil their half-yearly financial results, their Q1 successes have set the tone for what is expected to be another positive report. The next round of data will be crucial in determining whether the June dip was an anomaly or a harbinger of a broader downturn. For now, the industry remains cautiously optimistic, buoyed by strong year-to-date performance and the ongoing recovery momentum.
