Sands Gaining Macau Market Share Due to Summer Concerts, Assert Citi
With the aid of a summer concert series, Sands China might be capturing a larger share among premium mass gamblers visiting Macau.
This is the view of Citigroup analysts George Choi and Ryan Cheung, who recently reported that the operator likely saw a surge in premium mass market share this month due to live music events.
Sands' market share in overall premium mass gaming observed skyrocketed by roughly 14 percentage points from the previous month, reaching around 37%. The number of players there increased to 125 (in May of 2023: 113). The average premium mass wager was HKD27,303 (US$3,487), in contrast to the observed average in May of HKD17,142 (US$2,189).
Recent concerts by Jacky Cheung, a highly successful Hong Kong singer and actor, boosted Sands' premium mass share in Macau. Cheung is slated to perform at Cotai Arena, which is housed in Sands' Venetian Macau, on Friday, June 30, and Sunday, July 2.
Sands, Galaxy Leading the Pack in Macau's Premium Mass Market
Both Sands China and Galaxy Entertainment are already among the top players when it comes to mass and premium mass share in Macau. However, the concert series is making a difference.
This observation is significant given that it verifies the effectiveness of non-gaming investments. With operators required by the SAR's new gaming laws and recent license extensions to make $15 billion in non-gaming investments over the next decade, with Galaxy and Sands carrying the majority of the spending, this news may encourage others to follow suit.
Macau authorities believe that initiatives such as non-gaming attractions and drawing in visitors from Asia-Pacific countries apart from China are crucial in reducing their dependence on frequently fluctuating gross gaming revenue (GGR). And Sands China's case demonstrates how such non-gaming amenities and events are advantageous to casino operations. Take, for instance, the Apex Room, a high-end gaming facility at Sands' Macau properties.
"The Apex room at Plaza [Macao] tops our premium mass survey with an average wager per player of approximately HKD96,500 (US$12,322), while the Apex room at The Londoner places second at around HKD53,438 (US$6,824)," the Citi analysts noted.
The Impact of the Jacky Cheung Concert
There's no denying that the Jacky Cheung concert is positively impacting Sands China's premium mass gaming operations in Macau.
Sands' investment in this concert series is highly likely to yield profitable results in the form of increased market share, according to the Citigroup analysts. "We observed no signs of a decrease in luxury spending during our on-site visit last Friday," they reported. "We believe Macau's GGR and EBITDA are bouncing back well."
Moreover, the Jacky Cheung concerts, held at Venetian Macau, are also helping other venues. Galaxy Macau was the leading individual property in terms of premium mass market share for two consecutive months.
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Source: www.casino.org
