Macau GGR decline slows to 33 pct in September
Macau's casino gross gaming revenue (GGR) fell 33% year-on-year to $17.13 billion ($2.15 billion) in September, data released on Thursday by Macau's regulator Game Inspection and Coordination Bureau showed. This is the 16th consecutive month of GGR decline compared to the previous year, the lowest monthly tally in five years.
Nonetheless, September marked the slowest monthly decline since January, when the market shrank 17.4%. Last month's year-on-year decline was 2.5 percentage points lower than in August.
The September figure means Macau's cumulative GDP in the first nine months of the year was $176.02 billion, down 36.2% from the same period in 2014.
Macau's Economy and Finance Minister Lionel Leung Baitack said Wednesday that the government will continue to monitor the development of Macau's gaming industry.
The September figures made it possible to analyze that the third-quarter GGR was down 34.4% year-on-year and down 4% from the second quarter. The government will later release figures confirming the third-quarter split between VIP Baccarat and mass market gambling.
"[September results were largely in line with expectations, as the better start of the month was quickly erased by pre-seasonal - and softer this year - pre-month golden holiday jitters," said Carlo Santarelli and Danny Baloy, analysts at Deutsche Bank Securities.
"The September results are the smallest drop since January (China's Lunar New Year calendar move), but it would be hard to say encouraging, especially given the accelerated second consecutive year of decline compared to August (-44.7%)," they added in a note published on Thursday.
Many investment analysts said Macau's casino industry is suffering from China's economic slowdown and anti-graft movement. The industry has been hit by a recent incident affecting the Jungket system, which mainly brings Chinese VIP players to casinos, namely a fraud involving a former employee of Dore Entertainment, the operator of the Jungket, which operates VIP facilities in Win Macau.
Credit Suisse AG said in a note on Thursday that its gaming revenue "recovered the post-door junket sequentially."
"While concerns about capital flight were reported on Sept. 9 after the door that dragged down ADR [average daily earnings] in mid-September, the momentum is actually increasing at the end of the month," analysts Kenneth Fong and Isis Wong said. 슬롯머신
They added: "The gradual recovery of the GGR (despite slower seasonality ahead of the Golden Week) suggests that the Dore event does not cause significant systemic damage and that junket liquidity is [stabilizing]."
Neptune Group, a Hong Kong-listed investor in the Macau VIP gambling sector, warned last week that it may leave the Macau market if the VIP sector shows no signs of improvement.
Deutsche Bank Securities said it expects Macau's October GGR to fall 27% year-on-year.
"Over the past four years, October has, on average, increased by about 15.7% from September (+19.5% overall). If the average sequential trend continues, October will be down about 27% year-on-year," said Mr. Santarelli and Mr. Valoy.
Nonetheless, September marked the slowest monthly decline since January, when the market shrank 17.4%. Last month's year-on-year decline was 2.5 percentage points lower than in August.
The September figure means Macau's cumulative GDP in the first nine months of the year was $176.02 billion, down 36.2% from the same period in 2014.
Macau's Economy and Finance Minister Lionel Leung Baitack said Wednesday that the government will continue to monitor the development of Macau's gaming industry.
The September figures made it possible to analyze that the third-quarter GGR was down 34.4% year-on-year and down 4% from the second quarter. The government will later release figures confirming the third-quarter split between VIP Baccarat and mass market gambling.
"[September results were largely in line with expectations, as the better start of the month was quickly erased by pre-seasonal - and softer this year - pre-month golden holiday jitters," said Carlo Santarelli and Danny Baloy, analysts at Deutsche Bank Securities.
"The September results are the smallest drop since January (China's Lunar New Year calendar move), but it would be hard to say encouraging, especially given the accelerated second consecutive year of decline compared to August (-44.7%)," they added in a note published on Thursday.
Many investment analysts said Macau's casino industry is suffering from China's economic slowdown and anti-graft movement. The industry has been hit by a recent incident affecting the Jungket system, which mainly brings Chinese VIP players to casinos, namely a fraud involving a former employee of Dore Entertainment, the operator of the Jungket, which operates VIP facilities in Win Macau.
Credit Suisse AG said in a note on Thursday that its gaming revenue "recovered the post-door junket sequentially."
"While concerns about capital flight were reported on Sept. 9 after the door that dragged down ADR [average daily earnings] in mid-September, the momentum is actually increasing at the end of the month," analysts Kenneth Fong and Isis Wong said. 슬롯머신
They added: "The gradual recovery of the GGR (despite slower seasonality ahead of the Golden Week) suggests that the Dore event does not cause significant systemic damage and that junket liquidity is [stabilizing]."
Neptune Group, a Hong Kong-listed investor in the Macau VIP gambling sector, warned last week that it may leave the Macau market if the VIP sector shows no signs of improvement.
Deutsche Bank Securities said it expects Macau's October GGR to fall 27% year-on-year.
"Over the past four years, October has, on average, increased by about 15.7% from September (+19.5% overall). If the average sequential trend continues, October will be down about 27% year-on-year," said Mr. Santarelli and Mr. Valoy.
2023-07-15 18:27
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