Macau GGR to dip in June, analysts say
Analysts at Citigroup cited heavy rain and nationwide exams as the main factors.
Macau.- Macau’s gross gaming revenue (GGR) is experiencing a dip this month, mainly due to adverse weather conditions and nationwide university admission exams, according to Citigroup. Analysts George Choi and Ryan Cheung suggested investors should consider June’s data as a baseline for the industry’s performance this year.
Their survey findings indicated an increase of 10 per cent year-on-year in wagers in the premium mass segment, amounting to HK$10m (US$1.28m). This was primarily driven by a 31 per cent rise in the number of players to 543.
The average wager per player saw a decline of 16 per cent year-on-year, dropping to HK$18,478. Analysts attributed this to the comparably high base set in June 2023, when Sands China hosted performances by Cantopop singer Jacky Cheung, attracting high-spending individuals.
The survey highlighted the resilience of the gaming sector during China’s nationwide university admission exams, which typically result in reduced travel by parents. The survey noted that high-stake players remained steady year-on-year, with 16 whales identified, including one betting HK$10m at Galaxy Macau’s Horizon room.
Analysts viewed the year-on-year increase in player count as a favourable indicator for the industry’s health. Macau’s GGR for the first five months of 2024 was MOP$96.06bn (US$11.9bn), up 47.9 per cent year-on-year. GGR for May was MOP20.19bn (US$2.51bn), the city’s best monthly performance since borders reopened after the Covid-19 pandemic in January 2023.
