Macau GGR drops 8.3% in April

The government revealed that Macau GGR fell by 8.3% in April to €2.6 billion, which contributed to a 2.4% contraction in the first four months of 2019.

Macau.- The Macanese gaming industry continues to struggle in 2019, according to the Gaming Inspection and Coordination Bureau. The regulator revealed on Wednesday that Macau GGR dropped to €2.6 billion in April, down 8.3% year-on-year.

The amount meant the segment contracted 2.4% in the first four months of the year with an €11 billion GGR.

Gaming industry forecasts

Forecasts for the gaming industry in the Chinese territory of Macau haven’t been very positive in the recent past. Most recently, Fitch Ratings revealed it expects Macau gaming gross revenue (GGR) growth to be flat to low in 2019.

The firm explained the industry will be negatively impacted by mainland China’s economic situation. As it decelerates, GGR will be impacted in the territory.

Growth still may be positive “due to the assertive fiscal stimuli by [the] mainland government, diffusion in trade tensions with [the] United States and the recently completed transportation infrastructure improvements.”

Bernstein has also lowered its forecast for Macau’s GGR in April. The firm assessed MTD ADR was down 12% after two weeks compared with March 2019, and down 14% year-on-year.

“ADR for the first half of the month was weaker than for March, as VIP hold rate is estimated to have normalised from the high hold rate last month. Mass and VIP volume is estimated to be down mid-single digits month-on-month,” Bernstein said a few weeks back.

That’s why GGR growth switched to be down from -12% to -9% year-on-year, according to the company.

“We expect y/y comparison to be difficult through the end of April, as Macau GGR was very robust in early 2018 until US-China trade tensions heightened beginning last summer,” analysts said.