Macau GGR grows 6 pct in June

According to the Gaming Inspection and Coordination Bureau, Macau GGR grew 5.9% year-on-year during June after reaching €2.6 billion.

Macau.- 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.

Analysts take

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

“Average daily revenue (ADR) for June was €86.7 million (down 5% from May). While GGR for the first three weeks of June was weaker due to low hold, GGR picked up in the last week,” analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu in a Monday note.

“For July, we estimate Macau’s GGR growth to range from +2% to +4% year-on-year (+8% to +11% month-on-month),” analysts stated.

Meanwhile, JP Morgan Securities said Macau’s June GGR was the “best monthly growth so far this year”. “Average daily revenue was quite solid … considering June is seasonally the weakest month of the year,” analyst DS Kim wrote.

According to JP Morgan mass-market GGR in June may grow 18% to 20% year-on-year. VIP GGR “fell only” by 8-9%, “both showing marked improvements versus recent and year-to-date trends”.

“Though this was partly helped by easy comparisons, underlying trends were certainly encouraging, if not surprisingly robust: VIP demand finally seems to be stabilising. Mass GGR and visitations continue to print good double-digit growth,” he said.