Macau gaming revenue growth topped analysts’ estimates in November, as casino operators regained some momentum following months of weakness tied to China’s economic slowdown.
Gross gaming revenue rose 8.5 percent in November to MOP25 billion (USD3.1 billion) from a year earlier, according to data released on Saturday by the Gaming Inspection & Coordination Bureau. That beat the median analyst estimate for growth of 4 percent.
November’s result is a welcome signal for investors. It represents a 28th straight month of growth in the world’s biggest gambling hub. Yet it’s not quite a recovery. This is the third month in a row of single-digit growth, with September and October notching the weakest showings in more than two years. Analysts are debating the prospects for the industry as rich gamblers pull back amid an economic slowdown in China. Profits are still climbing and are forecast to hit a record next year, but the rate of growth is seen slowing as casinos face stiffer competition and emerging new hot spots in Asia. The data come as Macau is pushing out the timeline for casino operators to bid for licenses, a move that adds further uncertainty on top of concerns about the impact of the trade war between China and the U.S. MDT/Bloomberg
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