GGRAsia – Macau GGR at near standstill for 2014 on Nov result

Macau GGR at near standstill for 2014 on Nov result

Dec 01, 2014 Newsdesk Latest News, Macau, Top of the deck

Gross gaming revenue (GGR) in Macau for the calendar year to November 30 is at near standstill levels judged year-on-year, based on the latest numbers for last month.

GGR for November fell 19.6 percent year-on-year to MOP24.27 billion (US$3.04 billion) compared to MOP30.18 billion in the year-prior period, said the territory’s regulator the Gaming Inspection and Coordination Bureau (DICJ) on Monday.

The accumulated total for the calendar year to November 30 stood at MOP328.24 billion, a year-on-year rise of only 0.3 percent on the MOP327.28 achieved in the same period last year.

Investment analysts at Credit Suisse AG in Hong Kong had expected a 20 percent year-on-year decline in November – based on unofficial industry returns on average daily revenue up to November 23.

The split between mass revenue and VIP revenue for November won’t be officially known until the fourth quarter results are published by DICJ early in January.

But in October mass-market revenue dropped about 8 percent year-on-year, according to unofficial industry returns quoted by investment analysts. GGR market-wide in Macau dropped by 23 percent year-on-year in October, according to official data.

There has been a contraction in VIP revenue seen in every month since June, linked by analysts to the corruption crackdown in mainland China. Prior to October however, the mass market was still expanding year-on-year, albeit at a slower rate than last year.

Credit Suisse additionally said last week that the outlook for Macau GGR was still clouded by margin decline – linked to the contraction in the higher margin mass gaming segment – and keener competition on price between Macau casino operators, including “more aggressive junket incentive plans” for 2015.