• 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 gaming demand to pick up after Xi visit: analysts

Dec 17, 2019 Newsdesk Latest News, Macau, Top of the deck  


Macau gaming demand to pick up after Xi visit: analysts

December is on track to be the weakest month of 2019 in terms of year-on-year performance of Macau’s casino gross gaming revenue (GGR) according to Monday notes from three separate brokerages. But “pent up” demand is likely to bring an improvement in market performance once an official visit to the city this week by China’s leader President Xi Jinping has been concluded, say several of the institutions.

Nomura’s Instinet LLC expects an approximately 8 percent to 10 percent casino GGR decline but adds it “could be worse”. The institution’s scenario is for December GGR of about MOP24 billion (US$2.99 billion).

Sanford C. Bernstein Ltd is predicting anywhere from -12 percent to -16 percent GGR year-on-year this month.

JP Morgan Securities (Asia Pacific) Ltd anticipates decline of -14 percent to -16 percent. It puts the likely December tally at MOP22.3 billion to MOP22.8 billion.

The worst-performing month so far this year was August, which witnessed an 8.6 percent year-on-year contraction in GGR. November was not far behind, down 8.5 percent.

Nomura was the most upbeat of the three institutions in relation to December performance.

“Our consultant checks suggest the recent step-up in visa restrictions ahead of President’s Xi’s visit later this week… something we have been flagging since October, resulted in weaker GGR numbers this week and last,” wrote analysts Harry Curtis, Daniel Adam and Brian Dobson

They added: “However, we believe that demand could pick up after Xi’s visit at the end of the month, so we are not rushing to change our monthly estimate quite.”

Sanford Bernstein analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu stated regarding the December GGR numbers in the first 15 days of the month: “Visa limitations/restrictions on IVS [individual visit scheme] and transit visas are impacting higher-frequency, higher-end players in both VIP and mass along with junket agents, which has led to significant declines in high-end visitation and GGR.”

JP Morgan’s DS Kim, Derek Choi and Jeremy An said in their Monday memo: “Admittedly, the magnitude of slowdown seems bigger than we (and the market) had initially expected.”

But the added: “We wouldn’t read too much into the December print, given that it’s likely just a short-term blip, and that ‘lost demand’ is likely to be made up in January/February with pent-up demand, in our view.”

China’s leader is coming to Macau for the 20th anniversary of the city’s handover from Portuguese administration to that of China. It has been anticipated that he will announce some policies to help the city diversify its economy beyond high-stakes casino gambling.


  • tweet
Related articles
  • Mass market play record 65pct Macau GGR in 4Q: govt
    Mass market play record 65pct Macau GGR...

    Jan 15, 2021  

  • Macau Jan GGR likely to dip 60pct y-on-y: Bernstein
    Macau Jan GGR likely to dip 60pct...

    Jan 12, 2021  

More news
  • Wakayama casino RFP deadline affirms 2 suitors still in race
    Wakayama casino RFP deadline affirms 2...

    Jan 18, 2021  

  • CNY 2021 unlikely to boost Macau casinos, say observers
    CNY 2021 unlikely to boost Macau...

    Jan 15, 2021  


Latest News

Wakayama casino RFP deadline affirms 2 suitors still in race

Wakayama casino RFP deadline affirms 2 suitors still in race

Jan 18, 2021  

Japan’s Wakayama prefecture confirmed on Friday (January 15) that no new suitors interested in being private-sector partner for the local government’s tilt at a casino resort, had come forward to...
Read More
CNY 2021 unlikely to boost Macau casinos, say observers

CNY 2021 unlikely to boost Macau casinos, say observers

Jan 15, 2021  

Mass market play record 65pct Macau GGR in 4Q: govt

Mass market play record 65pct Macau GGR in 4Q: govt

Jan 15, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“We expect Las Vegas Sands to not have any material change in strategy. The focus remains developing Macau and Singapore”

Vitaly Umansky, Kelsey Zhu and Tianjiao Yu

Analysts at brokerage Sanford C. Bernstein



Most Popular

  • Sheldon Adelson, self-declared casino industry iconoclastSheldon Adelson, self-declared casino industry iconoclast January 13, 2021
  • Quality fake chips sold online found at Macau casinoQuality fake chips sold online found at Macau casino January 13, 2021
  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino entrepreneur Sheldon Adelson dies aged 87Casino entrepreneur Sheldon Adelson dies aged 87 January 12, 2021
  • Police find US$11m of missed Landing cash, suspects soughtPolice find US$11m of missed Landing cash, suspects sought January 14, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us