Gaming | Standard & Poor’s: No reason for optimism
Macau’s better-than-expected gaming revenues for the month of February may not indicate a rebound, according to Standard & Poor’s Ratings Services. The credit rating agency does not expect a meaningful improvement for the gaming industry in 2016.
Gross gaming revenue in February was MOP19.5 billion (USD2.4 billion), according to data from Macau’s Gaming Inspection and Coordination Bureau. The 0.1 percent year-on-year decrease was the smallest since the start of the downturn.
“We reiterate our view that gaming revenue in Macau is likely to decline 0%-10% in 2016, given policy headwinds and the structural shift to mass market customers from high rollers,” said S&P credit analyst Sophie Lin.
S&P anticipates that the decline in revenue from high rollers may continue by a further 10 to 20 percent. However, they also predict that gaming revenue from the mass-
market segment will stabilize, as more new casinos open in the second half of 2016.
“Among the casino operators we rate, weak gaming revenue growth in 2016 will have the least [amount of] impact on companies that focus on the mass-market segment or those that have large cash flows in other gaming markets,” said Lin.
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