Macau's Gaming Industry: Mixed Results in Q3 2023

Macau's gaming industry experienced mixed results in the third quarter of 2023. While property EBITDA margins slightly exceeded pre-COVID-19 levels, overall earnings remained lower. Find out more about the industry-wide EBITDA margin, the performance of the mass-market and VIP segments, and the positive development in October's gross gaming revenue.

EBITDA Margins Exceed Pre-COVID-19 Levels

Explore the performance of EBITDA margins in Macau's gaming industry during Q3 2023.

Macau's gaming industry witnessed a slight increase in EBITDA margins during the third quarter of 2023, surpassing pre-COVID-19 levels. According to Deutsche Bank Securities, the industry-wide EBITDA margin for Q3 2023 reached 29.3%, slightly higher than the 29.0% recorded in Q3 2019.

This positive development indicates a recovery in profitability for the industry, despite the overall lower earnings. It showcases the resilience of Macau's gaming operators in adapting to the challenges posed by the pandemic.

Mixed Performance in Overall Earnings

Discover the overall earnings of Macau's gaming industry in Q3 2023.

While EBITDA margins showed improvement, the overall earnings of Macau's gaming industry remained lower in the third quarter of 2023 compared to pre-pandemic levels. Combined property EBITDA for the quarter experienced a decline of approximately 20% compared to 2019, reaching just under $1.80 billion.

Net revenue also saw a decline of 21%, reflecting the ongoing challenges faced by the industry. However, it is important to note that non-gaming tax-related operating expenses decreased by 9%, indicating efforts to optimize operational costs.

Mass-Market Segment Approaches Pre-Pandemic Figures

Learn about the performance of the mass-market segment in Macau's gaming industry during Q3 2023.

The mass-market gross gaming revenue (GGR) in Macau's gaming industry approached pre-pandemic figures in the third quarter of 2023. It reached 95% of Q3 2019's GGR, amounting to $5.35 billion, representing a significant year-on-year surge of 760%.

This positive trend indicates a strong recovery in the mass-market segment, showcasing the resilience and appeal of Macau as a destination for leisure and entertainment.

VIP Segment Faces Significant Decline

Explore the performance of the VIP segment in Macau's gaming industry during Q3 2023.

In contrast to the mass-market segment, the VIP segment in Macau's gaming industry experienced a significant decline in the third quarter of 2023. VIP gross gaming revenue (GGR) plummeted by about 77% compared to Q3 2019, reaching $722 million.

This decline in the VIP segment contributed to an overall aggregate GGR for Q3 that was down by 31% compared to the third quarter of 2019, reaching just below $6.11 billion.

Market Share Shifts Among Gaming Operators

Discover the changes in market share among gaming operators in Macau during Q3 2023.

Among the six gaming operators in Macau, market share shifts were observed in Q3 2023. SJM Holdings acted as a donor, while Sands China and Melco were donors specifically in the VIP segment.

On the other hand, Galaxy Entertainment Group, Melco, and SJM saw their market shares increase in VIP rolling chip volume. These changes in market share reflect the dynamic nature of the gaming industry in Macau.

Positive Development in October's Gross Gaming Revenue

Learn about the significant rise in gross gaming revenue in Macau during October 2023.

In a positive development for the industry, October witnessed a significant month-on-month rise in gross gaming revenue (GGR) in Macau. GGR increased by 30.6%, amounting to over MOP19.50 billion (US$2.42 billion).

This marks the best monthly performance since January 2020 when the pandemic began, indicating a strong recovery and renewed interest in Macau's gaming offerings.

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