Gaming alert | Credit Suisse: revenue still down, but growth over Sept

Credit Suisse has released a report stating that Macau’s gaming revenue for the fourth quarter of 2015 fell by 27 percent year-to-year to MOP54.8 billion.
The data signifies a slight improvement in gaming revenue since the month of September, given that the indicators from that month recorded a 36 percent year-on-year fall.
The research house noted that trends indicate that revenue is shifting more towards the mass-
market and further away from the VIP sector. The proportion of gaming revenue that constituted VIP gaming in 2015 fell from 44 percent in the third quarter to 41 percent in the fourth.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is expected to grow faster in the first quarter of 2016 and could reach 1 percent growth quarter-to-quarter – an increase of 3 percent faster than that measured in the last quarter of 2015.
Credit Suisse’s report added that the improvement should ease market concern over junket liquidity.
Galaxy Entertainment remains the top pick for Credit Suisse, with a target price of USD35.7 and a rating of “Outperform.” Sands China Ltd came in second place with a target price set at USD35.1, which was equally rated as “Outperform.”