Mar 07, 2018 Newsdesk Latest News, Macau, Top of the deck  
Second-quarter growth in Macau’s VIP casino gross gaming revenue (GGR)is likely to decelerate compared to the first quarter, “partly on potential slowing VIP demand and more difficult comparison” judged year-on-year, said a Wednesday report from brokerage Sanford C. Bernstein Ltd.
It might contribute to a sequential contraction in Macau GGR in the three months to June 30, compared to the first quarter, the institution added.
“We expect to see some deceleration in second-quarter [total] GGR to +16 percent year-on-year (-3 percent quarter-on-quarter),” said the brokerage, adding that second-quarter VIP GGR might moderate to +16 percent growth year-on-year, and -4 percent contraction judged quarter-on-quarter.
“The VIP model will continue to face structural headwinds from a tightening regulatory environment and continued efforts by China to stem capital outflows,” noted the report authors, Vitaly Umansky, Zhen Gong and Cathy Huang.
“VIP GGR continued with strong growth (+22 percent year-on-year, +4 percent quarter-on-quarter) in the fourth quarter [of 2017]; January continued to exhibit strength in VIP, but we observed significant deceleration in VIP in February,” wrote the analysts.
Market-wide Macau GGR rose 5.7 percent year-on-year in February, to MOP24.30 billion (US$3.01 billion), according to data from the city’s regulator, the Gaming Inspection and Coordination Bureau, released on March 1. January GGR expanded 36.4 percent year-on-year.
Sanford Bernstein expects full first-quarter GGR for VIP and mass-market play combined to grow by 18 percent year-on-year and 3 percent quarter-on-quarter. That would in likelihood be driven by 23 percent year-on-year improvement in VIP – up 6 percent measured quarter-on-quarter – and 13 percent year-on-year expansion in mass GGR, i.e., 1 percent improvement on the first quarter, it said.
The institution raised “slightly” its estimate for full-year 2018 GGR growth to 11 percent. It said the new estimate comprised “mass year-on-year growth of 12 percent (up from 11 percent) and VIP growth of 9.5 percent year-on-year (up from 8 percent), coupled with industry-wide earnings before interest, taxation, amortisation and depreciation year-on-year growth of 13 percent (up from 10 percent)”.
Apr 16, 2024
Apr 16, 2024
Apr 19, 2024
Apr 19, 2024
Apr 19, 2024
The deployment of a “smart table” product – combining the use of radio frequency identification (RFID) technology and cameras gathering data for analysis via artificial intelligence (AI) –...(Click here for more)
”Once Solaire North is fully ramped up, and both properties are generating a certain expectation that we have on cash flow… then we will probably launch the Paniman [casino] project”
Enrique Razon
Chairman and chief executive of Bloomberry Resorts