Sands Leads 2023 Macau GGR Share, MGM, Wynn Gain

Posted on: March 8, 2024, 02:50h. 

Last updated on: March 8, 2024, 02:50h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Sands China — the Macau arm of Las Vegas Sands (NYSE: LVS) — was the biggest gainer last year in terms of share of Macau gross gaming revenue (GGGR).

Macau stocks
Sands China’s Venetian Macau. Operator Sands China gained the most market share in Macau last year. (Image: Luxury Lifestyle Magazine)

In a new report to clients, Deutsche Bank noted total GGR in the special administrative region (SAR) in 2023 was $22.66 billion, more than quadrupling the $5.19 billion notched a year earlier. Sands runs five casino hotels in the Chinese territory, including Venetian Macau, which is one of the most profitable integrated resorts in the world.

Last year, Sands China’s share of Macau GGR rose to 26.6% from 23.4% in 2022, according to Deutsche Bank. That equates to $6.03 billion, well ahead of the $1.21 billion notched by the operator in 2022. As measured by property market share, Sands was also the winner, coming in at 34.2%, or 10% higher than in the previous year. Galaxy Entertainment was second at 20.8%, noted Deutsche Bank.

Sands China gained market share in Macau due in part to its ability to capture more business from mass and premium mass clients as well as extensive menus of non-gaming amenities at its venues.

MGM, Wynn Gaining, Too

MGM China and Wynn Macau — the Macau units of MGM Resorts International (NYSE: MGM) and Wynn Resorts (NASDAQ: WYNN) — also made market share gains in the SAR last year.

MGM China, which is 56%-controlled by the US-based parent, commanded 15.3% of Macau GGR last year, up from 13.7% in 2022, said Deutsche Bank. That company runs two casino hotels in the SAR. Wynn Macau — operator of its namesake venue and Wynn Palace — garnered 13.4% of 2023 Macau GGR, up from 11.8% a year earlier.

As measured by property-level earnings before interest, taxes, depreciation, and amortization (EBITDA) share, Wynn was third behind Sands China and Galaxy at 14.8% while MGM was fourth at 13.4%.

Macau is Wynn’s largest operating market. Recent data indicates that in the Chinese territory, Wynn Macau and Wynn Palace have recently swiped incremental market share from some larger rivals, helped by a strong pivot to premium mass customers.

Strong Year for Macau EBITDA

Following a dismal three-year stretch in which the viability of some Macau concessionaires was threatened, EBITDA in the casino enclave markedly improved last year. In aggregate, the six operators posted 2023 EBITDA of $6.46 billion following a loss of $1.31 billion the year prior.

In terms of market share losers, Melco Resorts & Entertainment (NASDAQ: MLCO) and SJM Holdings were the offenders, shedding 1.7% and 4% of share, respectively.

City of Dreams operator Melco is not only actively deleveraging, but it’s taking steps to regain lost market share in Macau. The operator recently announced management changes and new sales efforts aimed at recouping lost share in the SAR.