Macau GGR grows on the mass-market

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Macau GGR is expected to recover from disappointing results in May.

According to analysts, GGR growth in Macau in June is expected to continue to be supported by an increase in revenue in the mass-market.

Macau.- Casino gross gaming revenue growth in Macau will continue to follow a solid trend as, according to analysts, it will be supported by an increase in revenue in the mass-market segment. Despite the disappointing results showed in May, investment experts believe that the industry will continue to grow, based on unofficial industry returns.

JP Morgan Securities (Asia) Ltd analysts DS Kim and Sean Zhuang wrote in a Monday Memo: “Based on our checks, gross gaming revenue (GGR) for the first 10 days of June was estimated at circa US$1.05 billion, translating into US$88.3 million per day. This is better than May’s US$85.4 million per day (which was dragged by poor VIP luck), helped by two full weekends during the 10-day period.”

In addition, they explained that “VIP volumes have fallen modestly month-on-month, which is within the typical volatility; and major junkets have had fairly normal luck factor month-to-date, having recovered from poor luck in May.”

Analysts Harry Curtis, Daniel Adam and Brian Dobson from brokerage Nomura also published their assessment and said: “By segment, month-to-date we estimate that average daily VIP volume is three per cent lower sequentially versus the average in May, VIP hold percentage is 2.85 per cent (versus the “normalised” hold range of 2.7 per cent to three per cent), and mass GGR/day is tracking two per cent to three per cent higher versus May.”

Furthermore, the brokerage’s GGR estimate for the month, should June GGR sequentially slow, would be around US$2.28 billion to US$2.49 billion, growing 10-per cent to 20-per cent year-on-year.

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