Macau GGR to grow 11 per cent in 2018

According to Deutsche Bank Securities Inc., Macau’s GGR is set to grow by 11.3 per cent year-on-year during 2018.

Macau.- The gaming industry is likely to keep improving in Macau, at least according to Deutsche Bank Securities Inc. Gross gaming revenue (GGR) in the autonomous territory is projected to grow by 11.3 per cent year-on-year in 2018, whit an EBITDA growth of nearly 15 per cent.

Projections were published in a note by the firm, wrote by analysts Carlo Santarelli and Danny Valoy, who also added that the estimated EBITDA growth for 2017 was around 23 per cent. However, it’s still unclear how well did the six gaming operators in the city performed as they are set to release their results for the fourth quarter and full-year 2017 later in January.

“We think the bigger variables in 2018/2019 are as follows: the ability for VIP to continue to expand on a sequential basis; the influence of VIP/mass mix on margins; the timeline/implementation structure of the full smoking ban; and overall policy plans related to currency controls, a hot topic of late,” Santarelly and Valoy added.

Furthermore, analysts projected a growth in VIP operations and forecasted as many as ten new junket rooms to open this year. “VIP revenue per licensed junket, when adjusted for reclassification activity, remains roughly 32 percent below peak annual productivity… Accordingly, we believe continued junket expansion and greater productivity on a per operator basis provide a solid backdrop for expectations of continued strength within the VIP segment,” they said.