Macau’s June gaming revenue down 3.7 pct year-on-year
Macau’s casino gross gaming revenue (GGR) for June reached MOP27.22 billion (US$3.41 billion), a year-on-year decline of 3.7 percent, the city’s Gaming Inspection and Coordination Bureau said on Tuesday.
It is the first year-on-year drop in monthly GGR in five years. In June 2009, the last time it happened, GGR fell 17.1 percent year-on-year, following the global financial crisis, according to data from Macau’s Statistics and Census Service.
Analysts had warned of a deceleration in GGR growth in the VIP segment for June 2014, although the mass market was seen as relatively robust. Analysts had also said that the 2014 FIFA World Cup in Brazil could limit growth for the months of June and July. The month-long tournament will end on July 13.
Prices of Macau gaming shares began inching up last week, after steep declines earlier in June.
“The worst is almost over,” Deutsche Bank gaming analyst Karen Tang said in a note before the figures were published.
“Historically, Macau stocks started to re-rate when GGR growth hit the bottom, and June will be it. We feel that the market is, by now, well aware that the World Cup, which ends July 13, is having a severe short-term impact on Macau,” Ms Tang wrote.
Macau’s accumulated total casino gaming revenue for the year to June 30 is MOP193.09 billion, a year-on-year growth of 12.6 percent, said the city’s gaming regulator.
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