Macau GGR to continue stable in the future
According to Deutsche Bank Securities Inc, the China-US trade war won’t affect the territory’s GGR figures yet.
Macau.- The trade war between the United States and China has the world on tenterhooks as economies from all around the globe continue to be affected by its backlash. However, according to stockbroker Deutsche Bank Securities Inc, Macau’s gross gaming revenue (GGR) figures won’t see a negative impact from the conflict in the near future.
“Our greatest concern for Macau stocks is that slowing headline growth gets interpreted as a function of a slowing macro environment or other trade-war-related concerns,” Deutsche said in a note and added: “We do not believe this to be the case at present, and note that China macro concerns have been present for some time, while market GGR numbers have held up well.”
According to analysts Carlo Santarelli and Danny Valoy, Deutsche Bank sees 12.7% for Macau’s GGR growth rate in the third quarter as an achievable goal.
“With mass gaming showing double-digit comparisons with little signs of stagnation, seemingly little growth in the VIP segment is already implied in the 2019 consensus forecast,” they assured in the report issued last Friday. “We note that our company forecasts are based on our market GGR growth assumption for 2019 of plus 6.8%.”
