Asia round-up: Macau’s receding revenue, Lo appointed & Melco

Home » Asia round-up: Macau’s receding revenue, Lo appointed & Melco

GGR in Macau fell 51% in August.
Macau reported gross gaming revenue (GGR) of MOP$2.18 billion (US$270 million) for August 2022, a 51% decrease from the previous year.
The figure, provided by Macau’s Gaming Inspection and Coordination Bureau, is a significant improvement over last month’s total of MOP$398 million, the region’s worst monthly performance since the pandemic began, with Covid-19 restrictions taking their toll. The total represented a 95% year-on-year drop in GGR and continued a general downward trend.

Despite the fact that GGR fell 51% from August 2021 to August 2022, the downward sequential trend appears to have stopped, with the monthly increase providing at least some hope for interested parties.

However, August’s total of MOP$2.18 billion is the second-lowest of 2022, trailing only July’s total of MOP$398 million. This figure was nearly as high as June’s MOP$2.47bn, the next-lowest figure on the list, but it is still well short of February’s MOP$7.75bn, the highest total of 2022 thus far.

February is the only month this year that hasn’t seen a year-on-year decline, with GGR rising 6% from February 2021.

The low revenue figures and year-on-year declines in 2022 have been attributed in part to a decrease in cross-border and cross-provincial travel from mainland China due to China’s Zero Covid policy.

The low revenue figures and declines in 2022 have been attributed in part to a decrease in cross-border and cross-provincial travel from mainland China due to China’s Zero Covid policy.

GGR is now at MOP$28.85 billion for the year, representing a 53% year-on-year decrease. Last year at this time, Macau’s GGR was MOP$61.9 billion.

Andrew Lo has been named Chairman of LET Group, which was previously known as Suncity Group.

Andrew Lo has been named Chairman of LET Group, the ex-junket that was formerly known as Suncity Group.

Lo’s appointment will take effect on September 1, 2022; he is already an executive director and shareholder in the company, having acquired controlling shares earlier this year.

Lo will earn HK$7m ($898,000) per year in his new role, with payments beginning on December 31, 2021.

Suncity reported a loss of HK$386 million for the first six months of the year in its H1 2022 report, more than HK$100 million more than the HK$251 million it lost in H1 2021.

Suncity (now LET Group) has shifted more towards casino operations since its business operations as a junket were all but ceased following the arrest of former CEO Alvin Chau and the outlawing of junkets in Macau.

Melco Resorts and Entertainment buys 85 million shares off the market.

Suncity has shifted into casino operations since its business operations as a junket were all but ceased following the arrest of former CEO Alvin Chau and the outlawing of junkets in Macau, investing in the Hoiana integrated resort in Vietnam.

Melco Resorts and Entertainment has completed an 85 million share off-market repurchase.

Melco claims in its listing that the shares were repurchased for a total of $152.7 million. Ten million of its ordinary shares and 25 million American depositary shares were repurchased.

Melco claims that the repurchase would reduce Melco Leisure’s stake in Melco Resorts from 56% to 50%.

The announcement follows the operator’s Q2 revenue drop of 48%. Total operating revenue decreased by 48% to $296.1 million. This poor performance was attributed to travel restrictions and business closures caused by an increase in Covid cases in Macau and mainland China.

Melco is a US stock exchange listed company that has recently been deemed at risk of delisting from US stock exchanges due to its primary business in China.

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