GGRAsia – Brokers estimate Macau GGR so far in July US$1.43bln

Brokers estimate Macau GGR so far in July US$1.43bln

Jul 16, 2019 Newsdesk Latest News, Macau, Top of the deck

Sanford C. Bernstein Ltd estimates that gross gaming revenue (GGR) in Macau casinos amounted to about MOP11.5 billion (US$1.43 billion) in the first two weeks of July, flowing in at the rate of about MOP821 million a day, on average.

The stockbroker issued on Monday a note saying the rate of inflow was 3 percent faster than the rate in June, but about the same as in July 2018.

The note says of the VIP and mass markets for casino gaming in Macau: “VIP volume is estimated to be down mid-single digits month-on-month, with [the] hold rate towards the lower end of the normalised range. Mass GGR is estimated to be up mid-single digits percent month-on-month.”

On the strength of its estimate of GGR in the first two weeks of the month, Sanford C. Bernstein is keeping its forecast that Macau casino GGR in all of July will be between 8 percent and 11 percent greater than the month before and between 2 percent and 4 percent greater than a year earlier.

Separately, Nomura also estimates that GGR in Macau casinos in the first two weeks of July flowed in at the rate of about MOP821 million a day, on average.

The stockbroking arm of Nomura issued on Monday a note saying the rate of inflow was about 3 percent slower than the rate of inflow in the first two weeks of July 2018.

“Average daily mass revenues are up about 5 percent to 6 percent sequentially versus the average in June,” the note says.

“VIP hold percent[age] is about 2.8 to 2.9 percent,” the note says, remarking that the percentage is in line with the normalised hold range of 2.7 percent to 3 percent.

“VIP volume growth is tracking about 4 percent to 5 percent lower sequentially compared with last month’s average.”

Its estimate of GGR in the first two weeks of the month prompts Nomura to maintain its forecast that Macau casino GGR in all of July will turn out to be between MOP26 billion and MOP27 billion, or about 5 percent more than a year earlier.