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Macau casinos followed up a weak Q3 with only incremental improvement during the Golden Week national holiday in China that started off Q4.
Macau saw a daily average of 26K arrivals for a total Golden Week tally of 182,152 visitor arrivals, according to Bank of America analyst Billy Ng. That level was only about 19% of the traffic seen in the pre-pandemic Golden Week holiday in 2019. Average hotel occupancy reached 80.6% vs. 48.1% in 2021 and RevPAR was up 24% from a year ago. Mass volume was estimated to be about 20% higher than the May holiday. Total gross gaming revenue is seen being reported at about 20% to 30% of the pre-pandemic level for Golden Week this year.
Heading into earnings season, Bank of America noted Q3 was a disappointment for Macau operators with gross gaming revenue -35% Q/Q, -70% Y/Y and -92% vs. 2019. The firm lowered EBITDAR expectations for the quarter on Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN). However, the firm thinks LVS, MGM, and WYNN could be EBITDAR positive in Q4 given easing travel restrictions set to take effect.
Macau casino stocks: Melco Resorts & Entertainment (NASDAQ:MLCO), Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), MGM China (OTCPK:MCHVF) (OTCPK:MCHVY), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF) (OTCPK:SJMHY), and Studio City International (MSC).
