Macau GGR to improve growth

According to analysts, Macau’s poor GGR growth is set to improve in March compared to February’s results.

Macau.- The near-future is looking good for Macau according to analysts, as the poor gross gaming revenue (GGR) growth seen in February is expected to improve in March. After being just 5.7 per cent up year-on-year during last month, brokerage Deutsche Bank Securities Inc projected March GGR to be up 17 per cent.

Analysts Carlo Santarelli and Danny Valoy wrote in a note: “If we were to assume a six per cent sequential decline from the January and February aggregate win per day, for the 31 days in March, it would imply growth of approximately 17.3 per cent year-on-year for the month.” They also revealed their projections and forecasted GGR to be up 18.8 per cent in the first quarter and 12 per cent in 2018.

“Post the holiday season and the National People’s Congress [of China], we believe March is poised for strength, with five full weekends in the month and the annual junket VIP dinners,” Deutsche Bank analysts added.

Analysts from both Sanford C. Bernstein Ltd and Nomura brokerages also forecasted better growth for the year.

“Assuming the sequential lift in March GGR is in line with the trailing six-year median, or up around one per cent month-on-month, our estimate for March GGR of €2.4-2.5 billion implies year-on-year growth of approximately 13 per cent to 18 per cent, or around 900 basis points higher than February’s 6 per cent lift,” Nomura analysts Harry C. Curtis, Daniel Adam and Brian H. Dobson wrote.