Analysts are likely to be watching for any commentary from management on the performance of the premium mass sector during the upcoming round of quarterly results, according to a note from Deutsche Bank.
Macau stocks have outperformed the market year-to-date, but the bank said it doesn’t believe there are any expectations for a lot of upside compared to the consensus for 1Q forecasts.
“Net-net, we think management commentary on premium mass will be critical, as it is the likely source of potential upside revisions,” it said.
The bank said Macau GGR grew by 13 percent in the quarter year-on-year and was up 5.1 percent on a sequential basis. Mass trends showed 11 percent year-on-year growth with modest sequential growth. VIP will be up 15 percent in 1Q and up 10 percent sequentially.
Given the growth rates, it sees $410 million in incremental gaming expenses. With all other costs being equal, the firm estimates market property level EBITDA of $1.78 billion, up 21 percent over the year and 3 percent from the prior quarter.