The gaming hub will likely experience a 16 percent increase in GGR during the second quarter of the year.
Macau.- Macau is set to decrease its gaming gross revenue (GGR) during the second quarter of 2017 after relatively good results in the first quarter, as reported by Bernstein Research. Nevertheless, the city is also expected to increase the number 16 percent.
As announced by the research company, Macau’s numbers seem to be steady for the rest of the year as well: during the second half of the year it is expected to reach a 5 to 6 percent increase, which would also represent a 10 percent growth for 2017. Earlier this year, Fitch Ratings released a report where it was revealed that a 12 percent increase was expected for this year, and it considered the year-on-year comparisons in the second half of this year and the possibility of mainland implementing a tight monetary control. Whilst the third and fourth quarter results won’t be as good as the other two, analysts say that they’re driven by a slow VIP revenue, even if it won’t have a significant impact on the final results.
“While we continue to have a positive outlook on the Macau gaming industry, for most of our coverage universe, valuations have largely caught up with near and medium term prospects, especially in light of continued risks the sector faces (tied largely to China policy and regulatory impact on Macau and unsustainable drivers that have revitalized VIP),” said the company.
Bernstein also said that whilst Wynn, the city’s top operator, has benefited from the recent VIP recovery, it also continues to be a share taker in VIP on the strength of its product and service offerings. “In Mass, Wynn Palace is strongly positioned in the market over the longer run and should continue to ramp up over the next few quarters as marketing efforts are enhanced and the connectivity to the property improves,” he added.