Sep 18, 2019 Newsdesk Latest News, Macau, Top of the deck  
Earnings of casino firms in the Macau market “have not bottomed” despite the current attractive valuations for the stocks of such firms.
So said banking group Morgan Stanley in a Monday report. The institution cut its forecast for 2019 year-on-year performance in Macau casino gross gaming revenue (GGR) to -3 percent, from -1 percent year-on-year previously.
For 2020, Morgan Stanley is currently anticipating 3 percent GGR expansion year-on-year, compared to its previous estimate of 8 percent growth.
“Despite our expectation of September GGR growth of 4 percent year-on-year (after two months of negative growth), we expect negative GGR growth in November/December,” wrote analysts Praveen Choudhary and Thomas Allen.
“Many macroeconomic indicators are suggesting a VIP recovery between now and December, yet VIP revenue has deteriorated further in the past three months,” they stated.
“An even bigger concern is mass revenue, which has remained robust (more than 10 percent [growth] year-on-year in the first eight months), but could turn slower in fourth-quarter 2019, to single digits,” added the analysts.
“Our concerns include slower premium mass business (commentary by various operators, including Sands China and Wynn Macau), as well as slower growth in room nights sold, owing to delays in new hotel openings.”
The institution stated it was now forecasting mass revenue growth of 10 percent this year and 7 percent in 2020, while VIP revenue was expected to decline 17 percent this year and 2 percent next year.
The institution stated: “Mass revenue is generally helped by overnight visitations, which, in turn, are helped by increase in hotel rooms, and both of these are slowing down as new capacity additions have been delayed.”
Brokerage Deutsche Bank Securities Inc said in a research note in August it expected the number of hotel rooms in the Macau market to grow by about 1 percent in 2019; by about 11 percent in 2020; and by circa 7 percent in 2021.
Morgan Stanley stated it expected the opening of the approximately 1,900-room, HKD39-billion (US$5 billion) Grand Lisboa Palace casino resort, SJM Holdings Ltd’s first foray into the Cotai market, to be delayed until January 2021. The casino firm – which will see its existing Macau gaming licence expire in June 2022 along with those of the other five operators – has most recently mentioned publicly a second-half 2020 launch for the property.
May 24, 2023
May 24, 2023
Jun 02, 2023
Jun 02, 2023
Jun 02, 2023
Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...Jun 01, 2023
Alfastreet, a manufacturer of electronic gaming machines,...Jun 01, 2023
Casino equipment maker Sega Sammy Creation Inc is tweaking...Jun 01, 2023
The iGaming segment in Asia “has grown rapidly” since...May 31, 2023
Showing slot machine players – via animations on the...May 31, 2023
Macau stocks in likelihood “have been punished too much...May 31, 2023
There are foreign companies still interested in investing...May 31, 2023
Thailand could pass the necessary enabling legislation for...May 30, 2023
China will remain a key market for Asian gaming...May 30, 2023
Alejandro Tengco (pictured in a file photo), chairman and...May 30, 2023
There are “plenty of reasons” for the global gaming...May 30, 2023
Gaming equipment provider International Game Technology Plc...May 30, 2023
The Global Gaming Expo (G2E) Asia 2023 Special Edition:...May 29, 2023
Austria-based gaming equipment maker and operator Novomatic...May 25, 2023
Sports betting and online casino operating platform...May 24, 2023
The business performance in Asia of gaming content and...May 18, 2023
The organisers of Global Gaming Expo (G2E) Asia 2023...May 17, 2023
Gaming content and equipment supplier Light & Wonder...May 16, 2023
Casino equipment maker Sega Sammy Creation Inc is to...May 09, 2023
Casino slot machine and digital gaming content provider...May 05, 2023
The Global Gaming Expo (G2E) Asia event in Singapore is the...May 04, 2023
An adviser to a Thailand parliamentary committee mulling...(Click here for more)
US$8.1 billion
Macau’s casino gross gaming revenue in the five months to May 31