A new report claims that Macau could record a one digit growth in casino GGR.
Macau.- Nomura, a Japanese brokerage, released a report on Monday where it explains that macau is likely to report a 6 percent growth in annual growth rate in casino gross gaming revenue (GGR) this year to 2019.
Whilst gambling revenue in Macau fell for a third year in a row in 2016, it is expected that the city will record an 8 percent year-on-year increase to US$30 billion. On 2018 Macau is likely to report US$31.8 billion, and 2019 will also experience a year-on-year expansion of 4 percent to US$33.2 billion, according to Nomura. “Mass gross gaming revenue has been on a steady up-trend; on a sector level, there is no cannibalisation thus far, with 2016 quarterly mass market GGR and earnings before interest, taxation, depreciation and amortisation (EBITDA) from existing casinos resilient at US$3.0 billion and US$1.4 billion, respectively,” added the report.
Fitch Ratings released a statement in December where it explained that gaming in Macau has better long-term prospects given investments in new supply, improvements in mass market indicators and under-penetration of gaming throughout the rest of Asia.