Macau is positive about June
June casino revenues in Macau would represent the city’s highest financial growth since the recovery.
Macau.- Deutsche Bank Securities Inc revealed last Sunday a comprehensive analysis on Macau casino industry for the upcoming financial ending of the month. According to bank’s experts Carlo Santarelli and Danny Valoy, June would mark a positive period on the local casino operations, as reported by GGRAsia.
June results may report over a 30 percent expansion in the Macau casino industry. The positive expectations come after the first months of a slight growth since last November, when the sector showed signs of recovery from the economic crisis.
“Most expect June will represent the peak of year-on-year GGR growth comparisons (circa +30 percent). Net-net, we weren’t able to identify that next leg of market acceleration, and believe the most likely trajectory from here is a deceleration in comparisons, which, at current [stock price] levels, keeps us on the sidelines,” GGRAsia quoted the bank’s statement.
As the VIP casino activity is under consideration, due to the government’s crackdown on the sector, experts are focusing on its growth. The VIP sector reported an increment of 16.8 percent year-on-year, while mass-market casino GGR grew 8.5 percent from the prior-year period.
“While obvious red flags aren’t present, as [VIP gambling loss] repayment cycles remain healthy at approximately 20 days, junket balance sheets remain heavily skewed towards customer deposits (80 percent of liquidity), a stark contrast to the casino credit-heavy balance sheets of the 2013 VIP environment,” revealed the bank’s analysts.
