Casino companies operating in Macau were in focus on Monday after it was reported that gaming revenue in the region surged 1,014% last month compared to the same month of last year. Publicly traded companies in the Macau gaming space include Las Vegas Sands (LVS), MGM Resorts (MGM), Wynn Resorts (WYNN) and Melco Resorts (MLCO).

GAMING DATA:  Macau's Gaming Inspection and Coordination Bureau said gross revenue from games of fortune in the region increased 1,014.4% to 8.4B patacas in April compared to the same month of last year, the highest yet monthly total of 2021. This compares to a 58% year-over-year increase in March to 8.31B patacas and a 135.6% year-over-year increase in February to 7.31B patacas.

Despite the sharp year-over-year increase for April, GGR was up just 1% from March and declined 65% from April 2019.

WHAT'S NOTABLE: April's jump compares with April 2020, when Beijing ramped up travel restrictions to slow the spread of Covid-19. Last April, gaming revenue sank a record 97%. At this time last year, Macau's borders were closed to nearly everyone, with only limited exceptions made for those assisting in the pandemic response.

On February 23 of this year, Macau authorities announced that no city in mainland China was any longer considered by the Macau authorities to be "medium risk" for transmission of COVID-19 infection. Daily visitor arrivals in Macau continued to show an upward trend in April, rising to the highest level since the start of the pandemic, according to the Macau Government Tourism Office. The resumption of domestic travel in mainland China could help further boost the numbers of visitors to Macau.

The upcoming Labor Day Golden Week holiday is expected to increase revenue for gaming operators in May, with Melco Resorts & Entertainment and MGM China Holdings Ltd. both predicting on earnings conference calls that they would have strong holiday performances. According to Chinese travel portal Qunar.com, hotel room bookings for Macau from May 1 through May 5 are up 17% from pre-pandemic levels experienced during the 2019 Labor Day.

ANALYST COMMENTARY: Bernstein analyst Vitaly Umansky said Macau's April daily GGR had been "steady" up to and including April 25, even as visitor volume had risen. The analyst said that indicated the recovery of the Macau tourism sector has involved a "low-value customer" segment in gaming terms.

PRICE ACTION: In morning trading, shares of Las Vegas Sands were fractionally lower, MGM Resorts shares were up 0.25%, Wynn Resorts shares gained 1%, and Melco Resorts shares trading in New York were fractionally lower.