• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau 1Q VIP GGR down 10pct: Morgan Stanley

Apr 11, 2019 Newsdesk Latest News, Macau, Top of the deck  


Macau 1Q VIP GGR down 10pct: Morgan Stanley

First-quarter VIP gambling revenue in Macau was down by 10 percent year-on-year, while that for the mass-market segment grew by 8 percent. That was the estimation of banking group Morgan Stanley in a Wednesday lookahead on the coming earnings season for Macau’s six operators.

The official data on the first-quarter split between mass-market and high-roller play has not yet been issued by the Macau government. The proportional contribution of credit-fuelled VIP play versus the mass-market sort has been declining for several years in the Macau market according to Macau government data. At least one brokerage has said however that some “premium-mass” play might also be generated by credit issuance.

“VIP rolling remained weak but we did not hear any good explanation except that agents are still cautious in extending credit,” said Morgan Stanley in the firm’s latest commentary on the Macau market, referring to information the bank said it had gathered from a recent trip to the city.

“The impact of recent rulings on foreign exchange transactions appears minimal,” added the report from analysts Praveen Choudhary, Jeremy An and Thomas Allen. That was a reference to the regulatory environment regarding channels used by some players – predominantly consumers from mainland China – to acquire Hong Kong dollars needed in order to place bets in the Macau casino market.

“Minimum bets have come down a bit, in our view,” added Morgan Stanley.

The lookahead gave some further commentary on the earnings performance and outlook for the individual casino firms in the market, including MGM China Holdings Ltd.

“We expect MGM China to report property EBITDA of US$199 million (+9 percent quarter-on-quarter), highest [growth rate] among peers,” wrote the bank’s analysts, referring to group earnings before interest, taxation, depreciation and amortisation. Judged year-on-year, that would be a 21-percent improvement, indicated the institution.

“More upside should come from the opening of the Mansions in late March and continued improvement at Cotai facilities,” added Mr Choudhary and his colleagues, referring to large-scale villa accommodation at MGM Cotai, aimed at high-value customers.

New junket rooms at City of Dreams, a Cotai property run by Melco Resorts and Entertainment Ltd; at MGM Cotai; and at Galaxy Macau, a Cotai venue operated by Galaxy Entertainment Group Ltd, “should help these companies gain VIP market share in 2019,” suggested Morgan Stanley.

“We expect Melco Resorts to report flattish to slightly-down EBITDA in the first quarter; but it has the highest potential for positive earnings estimate revision,” indicated the bank. It estimated the firm’s first-quarter EBITDA would be US$375 million, a decline of 1 percent year-on-year, and down 6 percent quarter-on-quarter.

Macau market-wide, Morgan Stanley anticipated “weak” first-quarter, hold-adjusted EBITDA, in likelihood down 2 percent year-on-year.

Referring first to a local market practice of incentive payments to casino firm staff, and second to player reinvestment by the city’s six casino operators, Morgan Stanley said: “This is driven by higher staff costs from 14th-month bonus, higher reinvestment rates, and lower revenue growth versus cost.”


  • tweet
Related articles
  • Wynn and Melco also flag bonus for Macau staff
    Wynn and Melco also flag bonus for...

    Jan 19, 2021  

  • Casino op MGM China to pay most staff discretionary bonus
    Casino op MGM China to pay most staff...

    Jan 18, 2021  

More news
  • Face tech ATMs in mainland’s Zhuhai near Macau say reports
    Face tech ATMs in mainland’s Zhuhai...

    Jan 19, 2021  

  • Investors see 2H Macau gain, rebound 2022: Bernstein
    Investors see 2H Macau gain, rebound...

    Jan 19, 2021  


Latest News

Face tech ATMs in mainland’s Zhuhai near Macau say reports

Face tech ATMs in mainland’s Zhuhai near Macau say reports

Jan 19, 2021  

Bank automated teller machines (ATMs) with facial recognition technology have been installed since Monday in some places in the mainland China city of Zhuhai, next door to Macau, according to several...
Read More
Investors see 2H Macau gain, rebound 2022: Bernstein

Investors see 2H Macau gain, rebound 2022: Bernstein

Jan 19, 2021  

MBS ArtScience Museum to host Star Wars exhibition

MBS ArtScience Museum to host Star Wars exhibition

Jan 19, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"We forecast Grand Lisboa Palace will have EBITDA of HKD2.0 billion (US$260 million) with 330 tables by 2022, and HKD3.5 billion with 380 tables by 2023"

Credit rating agency Fitch Ratings




Most Popular

  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino op MGM China to pay most staff discretionary bonusCasino op MGM China to pay most staff discretionary bonus January 18, 2021
  • Mass market play record 65pct Macau GGR in 4Q: govtMass market play record 65pct Macau GGR in 4Q: govt January 15, 2021
  • Malaysia Covid outlook negative to Genting Bhd: Moody’sMalaysia Covid outlook negative to Genting Bhd: Moody’s January 15, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us