GGR to stay the same in Macau
Analysts estimate that the Typhoon Hato and Pakhar could cause a weaker GGR result for August but not a permanent impact.
Macau.- Analysts from Morgan Stanley revealed that gaming gross revenue (GGR) is expected to rebound sharply this week and in September. The Typhoon Hato and Pakhar that affected the city this past week could cause weaker GGR results but won’t affect the results in the long run.
The brokerage explained that mass might experience a slower increase when compared to VIP, AGBrief reported. “We visited Macau last Friday. While many tables were closed on the mass floor, the tables in operation were mostly occupied, and minimum bets were not lowered, suggesting strong demand,” said the analysts, and added: “Mass revenue could be lower this month due to cancellation of some group tours and partial closure of mass floors last week.”
The storm results could end up showing a GGR of 18 percent increase year-on-year in August, but down from the 24 percent expected from previous estimations. Nevertheless, September GGR remains at 17 percent year-on-year increase, the news outlet said. On Friday, Macau’s Statistics and Census Service revealed that gross domestic product (GDP) increased 11.5 percent when compared to the previous year during the second quarter of 2017.
Earlier this week it was reported that MGM China Holdings Limited, MGM Resorts International and MS. Pansy Ho signed a collaborative pledge of US$3.7 million in order to rebuild Macau after the storm. The distribution of the agreement will be decided in the next few months with help of the government on Macau, which will decide where the money is needed.
