Citi: Casino revenue may reach MOP23.8b in Jan, down 17pct y-o-y

Citigroup has stated that Macau’s Gross Gaming Revenue (GGR) for the first eleven days in January amounted to MOP 8.7 billion, as revealed by industry sources. The total daily run rate over the last week was 743 million, lower than the first four days of January (948 million). If the GGR maintains this current level in the remaining days of the month, January’s GGR will be MOP 23.8 billion.  According to analysts from Citi, this will exceed the conservative forecast of MOP 23 billion.
Meanwhile, Moody’s Investors Service says the drop in gaming revenue in Macau is problematic for the government, taking into account the gaming industry’s “central role in public financing.” “The gaming industry comprises nearly half of the economy, and is critical to its overall health,” Moody’s said in a report earlier this week.
“Although the sector’s rapid expansion has underpinned exceptionally strong economic growth performance, with real GDP [gross domestic product] growth averaging 14.3 percent over 2009-13, the narrowness of Macau’s economic base poses a high degree of vulnerability to adverse developments in the gaming industry”.
However, Moody’s maintains an Aa2 credit rating for the Macau government, previously assigned in March 2014, and regards the outlook as “stable.”
The gaming regulator (DICJ) on January 2 reported that GGR for 2014 fell 2.6 percent year-
on-year to MOP351.52 billion (USD44.0 billion), following a record 30 percent y-o-y decline in December. PC