UBS estimates that the average spending of midfield travelers in the Macau gaming industry remained flat at MOP 6100 to MOP 6500 in April.
The Zhitong Finance App learned that UBS released a research report saying that the current EV/EBITDA valuation of Macau shares is about 10.2 times, 1.2 standard deviations below the long-term average. The bank continues to be optimistic about the Macau gaming industry, preferring Galaxy Entertainment (00027) and Xinhao Boya (MLCO.US).
According to the report, Macau released visitor statistics for April. The average number of visitors per day fell by about 1% month-on-month, with an average of 87,000 visitors per day, about 76% of the 2019 level. It was mainly dragged down by the decline in the number of visitors to Hong Kong. Due to the high base effect of the Easter holiday in March, the number of visitors to Hong Kong decreased by about 9% in April.
The bank pointed out that starting May 27, the mainland will add 8 new individual tourist cities to Hong Kong and Macau, which is expected to continue to drive the growth of visitors to Macau. Assuming that midfielders account for 85%-90% of total gaming revenue, it is estimated that the average spending of midfielders remained flat at MOP 6100 to 6,500 in April (equivalent to 135% to 140% of 2019 levels), reflecting resilient high-end demand.