Macau VIP GGR down in the first quarter

Morgan Stanley estimates revealed Macau VIP GGR was down 10% during the first quarter, while the mass market segment saw it grow 8%.

Macau.- Morgan Stanley revealed its estimates for the first quarter and showed Macau VIP GGR was down 10%. The brokerage also said mass market’s was on the other end, growing 8% year-on-year. The firm’s estimates come before official figures from the Macanese authorities.

“VIP rolling remained weak but we did not hear any good explanation except that agents are still cautious in extending credit,” Morgan Stanley said. “The impact of recent rulings on foreign exchange transactions appears minimal,” said analysts Praveen Choudhary, Jeremy An and Thomas Allen.

“We expect MGM China to report property EBITDA of US$199 million (+9% from 4Q18), highest growth rate among peers,” they wrote. Year-on-year, it would rise to be a 21% improvement.

“More upside should come from the opening of the Mansions in March and continued improvement,” experts added about MGM Cotai.

Regarding Melco Resorts, the brokerage forecasted “flattish to slightly-down EBITDA.” However, they said that “it has the highest potential for positive earnings estimate revision.”