Macau’s casinos could see revenue plummet 35 to 42 percent this month compared to February last year, according to new analysis.
In the first week of February, average daily receipts for Macau casinos hit over $83 million, down 13 percent from January's average of $95.9 million, Wells Fargo analyst Cameron McKnight said in a report.
"Our checks suggest that revenue was relatively weak given an extra weekend day and a high hold (casinos' retained winnings) ... likely representing the lull before Chinese New Year," McKnight said.
"We remain neutral on Macau gaming as estimates and valuations adjust to a 'new normal' of tighter government oversight and lower revenue and earnings growth than in the past," McKnight added.
Macau's gambling revenue plunged 17.4 percent to $3 billion in January, the eighth straight monthly drop in a row.
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