JPMorgan, a well-known financial institution, has revised its earnings estimates for Macau casino operators for the first quarter of 2023. These alterations are the result of last week’s announcement that most entry restrictions for Macau, Hong Kong, and the mainland would be lifted on January 8th.
Morgan Stanley analyst, DS Kim, described the revisions as incrementally beneficial, the road to recovery now appears to be ahead of anticipated.
He also commented on earlier predictions of a rapid increase in the global market for general purpose revenue, predicting that it would be 35% higher than in the first quarter of 2019. He also stated that the return of Hong Kong players made the holiday a bit too conservative.
Kim expects positive earnings in the first quarter and cash flow in the third quarter, this will increase GGR levels in March by more than 35%, and the growth is likely to be greater than 50% in the June quarter.
This increase is beneficial to Macau, it’s the first increase since a 50% reduction in revenue in 2022.
It’s possible that full recovery to pre-pandemic levels occurs in the second half of the year, much sooner than the current estimate of mid-2024.
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