Analysts betting on October gaming rebound

Analysts at brokerage house Sanford C Bernstein suggest that gross gaming revenue in October may bounce from the disappointing 2.8 percent increase in September.

The analysts said that gross gaming revenue was on track to expand by between 4 and 7 percent year-on- year, based on a conservative 20 percent slowdown in the remainder of the month from the average daily rate of almost MOP1 billion between October 1 and 14.

Meanwhile, Citigroup expects October gross gaming revenue to grow by 5 percent to around MOP28 billion.

October is normally a strong month for Macau’s gaming sector as it includes the lucrative Golden Week holidays.

This year, the average daily rate during the Golden Week reached approximately MOP1.3 billion, before slowing down in October’s second week to around MOP743 million, according to Citigroup, citing industry sources. The strong result was helped by a 7.2 percent increase in total visitation compared with the same week last year.

Also during this year’s Golden Week, gaming operators Galaxy Entertainment Group and Melco Resorts & Entertainment have reportedly gained market share at the expense of their rivals.

In October 2017, gross gaming revenue recorded 22.1 percent annual growth to reach a total of MOP26.63 billion – the highest monthly take in exactly three years. October’s growth came in slightly above the end-year growth of 19.1 percent for 2017.