Macau GGR to grow 15 pct in 2017

The brokerage Nomura revealed that after the second quarter results, Macau could experience a GGR growth of 15 percent.

Macau.- Nomura, a brokerage from Japan, said that it is estimated that gross gaming revenue (GGR) could increase to 15 percent for 2017 as the territory experienced encouraging results during the second quarter of the year that finished on June 30.

Government information revealed earlier this week that gambling revenue in Macau increased 25.9 percent to US$2.49 billion in June, which represents the eleventh consecutive month of winning streak. High roller VIPs contributed to the impressive results. Last month, analysts estimated that June would mark a positive period on the local casino operations, with an approximate 23 to 30 percent. “We lift our 2017 gaming revenue growth forecast for the second time, from 12 percent to 15 percent, after lifting it from 8 percent to 12 percent on 30 March. That was led by the solid second quarter, with GGR growth accelerating to 22 percent (from 14 percent in the first quarter),” said Nomura on Monday, as GGRAsia reported. Whilst the third quarter could see a 15 growth, the fourth could experience an 8 percent in GGR.

“First, the recent VIP growth was not a broad-based recovery, with the growing VIP volumes enjoyed predominantly by Wynn [Macau Ltd]. Second, historically VIP has been correlated to performance of the macroeconomy, and our China economist is expecting moderation in China’s property and manufacturing industries which might affect VIP demand [in Macau]. Third, further tightening measures in the form of capital control restrictions and tightened smoking regulations could impact VIP. Fourth, there is increased competition for VIP players regionally, with expanding VIP GGR in the Philippines and Saipan.”