Analysts forecast Macau’s GGR growth in July

According to investment analysts, Macau’s GGR growth in July will be somewhere between 2-5% after two consecutive months of increased revenues.

Macau.- Macau spent a period of slight decline in revenues but is already bouncing back. After two months of increased figures, analysts forecast Macau’s GGR growth to be between 2%-5%.

According to Japan’s Nomura, Macau’s GGR growth in June and the US-China truce amid the trade war helped. Both elements “should be viewed as strong positives for the Macau gaming stocks,” they said.

“Assuming July increases sequentially in line with its trailing seven-year average… we estimate GGR for the month will settle around €2.8-2.9 billion,” Nomura analysts Harry Curtis, Daniel Adam and Brian Dobson, stated.

“Our 5% growth estimate for July, while roughly in line with June’s 5.9% number, implies roughly 500 basis points of acceleration versus circa 0 per cent year-to-date,” said the Nomura team. “We expect improved growth for the balance of the year, given relatively easier one-year growth comparisons,” it added.

June’s growth

Macau’s Gaming Inspection and Coordination (DICJ) has reported that GGR in June totalled €2.6 billion. This figure announced by the city’s regulator is 5.9% higher than the same period of last year.

Gambling revenue in Macau had hit a five-month high in May, despite a slower demand from high rollers and a slowdown in Macau’s economy. In June it continued to grow from 2018, even though it was €200 million lower than last month’s results.

Financial firms had forecast different results for Macau’s GGR. According to Brokerage Sanford C. Bernstein Ltd, June’s results “exceeded expectations”.