Macau experienced its worst quarter in years

The biggest casino hub across the world has ended its worst quarter since 2011.

Macau.- As casino operators announced another bad month for Macau’s revenues last June, the industry’s analysts proclaimed the end of the second quarter of 2016 as the worst in terms of economy since 2011.

During the last three months, gross gaming revenues in Macau garnered MOP $108 billion –US$13.5 billion–, meaning 8 percent less Quarter to Quarter and 9 percent less year-on-year, according to the brokerage.

Experts suggested that this quarter’s decline is due to the drop in the VIP sector and tourists visits. The football Euro Cup tournament and the opening of Shanghai Disney may have attracted Chinese and international visitors to other destinations instead of the casino hub.

The VIP sector fell 20 percent year-on-year. Furthermore, the Chinese government has set the prohibition of phone betting since May, 9. However, mass revenue increased year-on-year, whilst its four percent QoQ decline during the quarter was the worst seen in the last four quarters.

“If we assume 2H16 EBITDA holds at 2Q’s level, consensus expectation for 2016 implies incremental EBITDA of US$206 million and US$47 million from Parisian and Wynn Palace, respectively. Sands should see stronger seasonality in retail and hotel earnings in 2H16, and will also benefit from 3,000 new rooms at Parisian in 4Q16,” announced the brokerage.

And added: “However, in the absence of a new casino, MGM’s annualized EBITDA could miss 2016 estimates by 7 percent. MPEL may report positive QoQ growth, but mainly due to the absence of bad debt of US$18 million at Altira that dragged 1Q16, and City of Dreams Manila EBITDA growth of 39 percent QoQ.”