Gross gaming revenue (GGR) in Macau could increase 34 percent year on year to $30.3 billion, according to estimates from CLSA. The brokerage raised its forecast by 3.5 percent after a strong showing during Chinese New Year (CNY).
Analysts said the financial forecast presumes increased visitation throughout the year, including during slow periods, which “have proven to be resilient in 2024 so far.” As reported by Asia Gaming Brief, GGR for the Macau gaming hub could increase an additional 5 percent to $31.9 billion in 2025.
CSLA analysts Jeffrey Kiang and Leo Pan say MGM China ranks above its competitors in the market through next year, with recurring free cash flow to equity of $744 million this year and $531 million next year, the highest level since 2013, according to AGB.
“Apart from Galaxy, we still believe MGM China and Sands China have the strongest balance sheets,” they wrote, and Sands China “should reap the rewards from revamping Londoner Phase 2 from 2025.”
Overall, they continued, “the sector’s balance sheet strength has improved, as net debt declined 4 percent year over year in 2023. MGM China and Wynn Macau have already resumed dividends, which surprised investors.”
