GGRAsia – Typhoon cuts Nomura, Bernstein forecasts of Macau GGR

Typhoon cuts Nomura, Bernstein forecasts of Macau GGR

Sep 18, 2018 Newsdesk Latest News, Macau, Top of the deck

Stockbroking firms Nomura and Sanford C. Bernstein Ltd have reduced their forecasts of growth in gross gaming revenue (GGR) in Macau casinos this month in view of the disruption caused by Typhoon Mangkhut at the weekend.

The Macau government ordered the precautionary closure of all casinos from late Saturday until Monday morning, when the danger posed by the typhoon had passed. The government order was unprecedented.

The storm also severely limited travel to and from the city as it passed by, reducing customers in the casinos when they were open.

The Instinet research arm of Nomura issued on Monday a note saying it had reduced its forecast of Macau GGR in this month to MOP23.44 billion (about US$2.9 billion), or 10 percent more than a year ago, from its previous estimate of MOP24.5 billion, or 15 percent growth.

But Instinet is sticking to its forecast of GGR in the whole of the third quarter.

“Typhoons tend to interrupt travel for short periods but, consistent with past instances, they do not change underlying demand trends,” its note said.

A note issued also on Monday by Sanford Bernstein said the stockbroker had reduced its forecast of Macau GGR this month to a figure somewhere between MOP21.3 billion, or the same as a year ago, and MOP22 billion, or 3 percent more than a year ago.

Sanford Bernstein had previously forecast annual growth in GGR this month between 8 percent and 11 percent.

“Based on our checks [on Monday], the damage from the typhoon to casino properties is immaterial and the city is progressing with clean-up efforts,” its note said.

On Monday morning, GGRAsia visited the city’s main casino properties, and all had already resumed operations.