UBS Group pointed out that the total gambling revenue in Macau in June was MOP 17.7 billion, up 16% year-on-year, and down 12% month-on-month. The average daily gambling revenue fell 9% to MOP 590 million, roughly in line with expectations and about 75% of the level in 2019. The slowdown in the previous month is consistent with seasonal factors from 2015 to 2019.
Based on its tracking of 33 hotels, the bank expects the average hotel room price to be HKD 3,200 per night in the next month, up 6% year-on-year and down 5% week-on-week. The bank expects an increase in tourists due to the addition of 8 cities and more flights for individual travelers from the mainland in the summer.
UBS remains bullish on the Macau gaming industry and prefers MGM China Holdings Limited (MLCO.US) and Galaxy Entertainment Group Limited (00027.HK).