Gaming | July GGR forecasts from MOP17.5b to MOP20b

Employees preparing at the Broadway Macau, developed by Galaxy Entertainment Group Ltd., in Macau, China, on Tuesday, May 26, 2015. Galaxy Entertainment Group Ltd. led gains in casino shares after the government of Macau said in a statement it approved 150 new gaming tables for a gambling resort operator thatÕs set to open a new project. Photographer: Billy H.C. Kwok/BloombergCiting its local gaming sources, Nomura noted that daily gross gaming revenue (GGR) in the first five days of July totalled MOP609 million. The results were considerably lower than those of the last 9 days of June (MOP635m), but they also had the benefit of two fewer (lower volume) weekdays.
The research house expects July’s volume to settle at MOP600m, which is seasonally stronger than June’s average of MOP579m. Nomura said that daily
GGR in the summer months typically increases on a sequential basis, and that the recent easing of transit visas should help slightly lift premium mass revenues.
Nomura  assumed   daily
GGR of MOP560-660m for the remainder of the month, implying that July’s GGR will be down 29-38 percent, or MOP17.57-20.17b.
In another report, Citigroup stated that Macau’s table GGR for the first five days of July had reached approximately MOP2.9b, based on industry sources. The daily run rate in the past five days amounted to MOP614m,
6 percent higher than that of June (MOP579m). The research house trimmed the July GGR forecast from MOP20b to MOP19b, representing a year-on-­year decrease of 33 percent.
Credit Suisse also issued an outlook on Macau, predicting that the worst is over for the local gaming sector. In its latest evaluation of the sector, the bank noted that the gaming stocks stand out as strong outperformers in Hong Kong, reversing its lackluster performance over the past year. “We see a fundamental shift towards supportive policy, and seasonally stronger months are ahead,” Credit Suisse indicated, highlighting the relaxation of transit visa policies for mainland visitors last week.

Categories Macau