• 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 Nov gaming revenue trend disappointing: analysts

Nov 18, 2015 Newsdesk Latest News, Macau, Top of the deck  


Macau Nov gaming revenue trend disappointing: analysts

Macau’s casino gross gaming revenue (GGR) for the first 15 days of November indicates – were the average daily rate extended across the entire month – a year-on-year fall for November in the range of 31 percent to 34 percent, say several analysts quoting unofficial industry returns.

“In general, November is seasonally weak (about 8 percent to 14 percent month-on-month decline versus October in 2010-2014), but this November may be poised for 15 percent to 17 percent month-on-month decline,” said a note issued on Tuesday from analysts Vitaly Umansky, Simon Zhang and Bo Wen at brokerage Sanford C. Bernstein Ltd.

November includes a weekend when the Macau Grand Prix is staged. A number of analysts have previously commented that while the event draws many tourists interested in non-gaming attractions, it is less popular with gamblers. That is said to be due to factors including hotel room rates that are higher than the seasonal weekend average, noise from the racing cars and traffic disruption as vehicles are diverted from the racing circuit, which is composed of city streets.

Kenneth Fong and Isis Wong of Credit Suisse AG noted on Tuesday: “We expect the average daily revenue to soften week-on-week this week due to the traffic control in Macau around Grand Prix (19 to 22 November), but likely to pick up next week, according to seasonality.”

“Given the Macau Studio City opening October 27, we believe investors will find market GGR trends disappointing,” said a note the same day from David Bain of brokerage Sterne Agee CRT, referring to industry returns for the first 15 days of November.

“One consideration for the lack of immediate market growth from the opening of Studio City should be that the property caters solely to mass. VIP represents 53 percent of total [Macau] GGR and is top heavy in terms of GGR generation,” added Mr Bain, referring to the decision of Studio City’s majority owner Melco Crown Entertainment Ltd to open the resort with no junket rooms for VIP play.

“The market is in the midst of a transition away from VIP which should remain in secular decline,” said analysts David Katz and Brian Davis of Telsey Advisory Group in a note on Tuesday.

Sanford Bernstein noted that China’s October data on total social financing on the mainland remained “weak”. The growth of such financing has historically shown a strong positive correlation with Macau’s VIP gambling segment, said the brokerage.

“Liquidity is crucial in the VIP segment as it allows easier and less expensive credit play by providing junkets with cheaper and more easily available capital while also increasing player liquidity/access to cash. We believe the continued liquidity tightening in China (coupled with China’s crackdown on underground banking) creates continued headwinds for VIP,” said the Sanford Bernstein team.

The institution indicated however that Melco Crown’s market share of Macau table games GGR was up 1.6 percentage points month-on-month in the period from November 1 to 15 inclusive, to a 15 percent share.

“Melco Crown’s market share is at its highest level, as it takes [the] benefit of Studio City’s penetration on [of the] mass market in Cotai,” added Sanford Bernstein.


  • tweet
Related articles
  • Melco’s Lawrence Ho hopeful on Macau recovery in March
    Melco’s Lawrence Ho hopeful on Macau...

    Feb 26, 2021  

  • Macau casino GGR soared in final days of CNY: brokerages
    Macau casino GGR soared in final days...

    Feb 23, 2021  

More news
  • Sci Games title ‘Hurricane Horse’ approved within Apac
    Sci Games title ‘Hurricane Horse’...

    Mar 01, 2021  

  • RGB loss slims sequentially for 4Q, annual loss US$7mln
    RGB loss slims sequentially for 4Q,...

    Mar 01, 2021  


Latest News

Sci Games title ‘Hurricane Horse’ approved within Apac

Sci Games title ‘Hurricane Horse’ approved within Apac

Mar 01, 2021  

Scientific Games Corp says it has approval within Asia-Pacific (Apac) for “Hurricane Horse” (pictured), the third Duo Fu Duo Cai-series game on the DualosX cabinet. The company said in an email...
Read More
RGB loss slims sequentially for 4Q, annual loss US$7mln

RGB loss slims sequentially for 4Q, annual loss US$7mln

Mar 01, 2021  

Macau casino GGR down 9pct m-o-m in February: govt

Macau casino GGR down 9pct m-o-m in February: govt

Mar 01, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

”While our financial results for fiscal 2020 were clearly impacted by the pandemic, they also highlighted our strengths, and the effectiveness of our business’ response"

Trevor Croker

Managing director of casino slot machine maker and digital games provider Aristocrat Leisure



Most Popular

  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
  • Melco’s Lawrence Ho hopeful on Macau recovery in MarchMelco’s Lawrence Ho hopeful on Macau recovery in March February 26, 2021
  • Suncity to open clubs at Londoner Macao, Lisboa PalaceSuncity to open clubs at Londoner Macao, Lisboa Palace February 26, 2021
  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us