Macau to continue growing path
Morgan Stanley Asia forecasted that Macau’s gaming market is on track to continue growing as it has been since mid-2016.
Macau.- The gaming market in Macau has been growing non-stop since mid-2016 and is likely to continue on the same path. According to Morgan Stanley Ltd, the industry will keep growing “for the next few years” as it hasn’t yet peaked.
“Many of the indicators are at a discount to what we saw in the last peak (first quarter 2014) including table and slot yields (win/unit/day), staff cost inflation, marketing and advertising costs, and valuation,” analysts Praveen Choudhary and Jeremy An stated.
Casino GGR reached €10.55 billion after growing 22.2 per cent year on year. According to Morgan Stanley, they keep their 2018 Macau industry GGR forecast at 16 per cent but have increased their “mass growth estimate to 17 per cent while lowering VIP growth outlook to 15 per cent ”.
There have been several assessments on Macau’s market and all have been highly optimistic: “Customers are coming back with a better understanding of the post-corruption crackdown environment,” Fitch Ratings Inc analysts Alex Bumazhny, Colin Mansfield and Joseph Fontana said. The brokerage also said that the VIP gambling segment in Macau “continues to benefit from solid demand characteristics and a more healthy junket environment”.
Union Gaming, JP Morgan Securities Asia and Deutsche Bank Securities Inc analysts have also advanced that the industry will continue growing, at least over the next few months.
