Macau Casinos See Slowing in GGR

Hong Kong to Macau Bridge should bring in tourists for the island, but it may not be bringing in gamblers. Lots of things have been happening for Macau recently, including the aforementioned bridge completion. Chinese New Year helped bring more people to the island, many of which did gamble. Since the junket operators have been the target of government crackdown’s Macau has seen a loss with their casino revenue.

It came back, particularly, with the last few months and targeting mass gaming revenue. But, the financial records sent to the Hong Kong stock exchange, shows that May is not where Macau casinos would like to see their revenue.

The gross gaming revenue results are different from April’s stellar report. May should an increase, but not as much as the casinos hoped.

Macau gross gaming revenue is up 12.1 percent, but this is a slower increase than in previous months.

The Macau Numbers

Casinos made $3.15 billion in May, which was up from $2.82 billion in May of 2017. However, the growth from year-to-year was lower than the April 17-18 period. In April, the growth was up 27.6 percent. May was near 12 percent for gross gaming revenue, and overall closer to 16 percent. The latest figures from Macau’s five-month revenue show $15.83 billion, which is a 20 percent increase from 2017.

Union Gaming, which reports the financial data and estimates projections for the year, say the slowdown in May is related to mass market numbers. The number of visitors was down due to a mid-month mainland bust at a currency exchange. The shops are in the Gongbei border area. The market may also be slowing down due to an increase in overall growth for the last 22 months.

Analyst firm, Union Gaming, looked at the VIP sector to see that it will probably grow in the mid to high teens, based on percentages. The Macau Q2 outlook will be closer to 18 percent instead of the 20 percent they expected. June may even be as low as 15 percent.

One must also keep in mind that the external factors could affect the gross gaming revenue. The Macau Big 6, six of the largest hotels on the island, are bullish in nature.

Fitch Ratings, an international credit debt watcher says Macau’s gaming industry is strong despite some deceleration in growth. The firm maintains the GGR for 2018 will probably be 14 percent on average.

Leave a Reply

Your email address will not be published. Required fields are marked *