Analysts at CBRE have raised their revenue forecasts for Sands, MGM, and Wynn, citing strong performance in Macau

Analysts John DeCree and Max Marsh from CBRE have raised their revenue forecasts for American gaming operators Las Vegas Sands, MGM Resorts International, and Wynn Resorts. The primary driver behind this adjustment is the rapid increase in profits from the companies' operations in Macau following the easing of COVID-19 restrictions.
The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) estimate for Las Vegas Sands for the second quarter of 2023 has been revised to $911 million (approximately 82.4 billion rubles). Factors contributing to this growth include a faster-than-expected recovery of the operator's activities in Macau, as well as increased visitor numbers and capital investments in Singapore.
MGM Resorts' adjusted EBITDA in Macau rose from $746 million (67.5 billion rubles) to $848 million (76.7 billion rubles). CBRE noted that MGM is benefiting from "tailwinds globally," including the reopening in Macau, recovery in Las Vegas, and the anticipated profitability of its digital ventures. The analysts also highlighted the operator's project in Japan and the potential acquisition of a casino license in New York State.
For Wynn Resorts, the expected adjusted EBITDA in Macau increased from $1.29 billion (116.6 billion rubles) to $1.37 billion (123.9 billion rubles). "We assert that the market is underestimating Wynn's recovery in Macau, the resilience of its revenues in Las Vegas, the substantial value of its real estate portfolio, and the profitable development project in the UAE," the analysts stated.
In a separate note, DeCree and Marsh expressed optimism about the recovery trajectory in Macau. They anticipate further increases in traffic to this key market as transportation accessibility improves.
"Since China abruptly reopened in January 2023, Macau's gross gaming revenue has rebounded relatively quickly, albeit at a slower pace than gaming markets in the U.S. and other Asian countries. By the end of May, Macau's visitor numbers were still 45% below 2019 levels, leaving ample room for further recovery. We expect the next phase to be marked by an increase in visits as hotel and transportation capacities are restored," the analysts noted.
It's worth mentioning that four out of ten gamblers have never visited a land-based casino.