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Macau GGR falls 8.5 percent in June: analysts

Macau gross gaming revenue fell 8.5 percent in June to MOP 15.9 billion (US$2 billion), according to the latest figures from the Gaming Inspection and Coordination Bureau (DICJ).

The figures represent a 25th straight month of decline for the casino hub, in line with analysts’ expectations of -5 to -12 percent.

In a report from DICJ on Friday, the gaming regulator said the adjustment period of gaming industry will continue and the second half of 2016 will probably remain “negative increase”, but the momentum of decrease will slow down.

Union Gaming analysts said that while they had hoped for better performance, mass market and slots performed “decently” with low / mid-single digit growth.

The brokerage also noted that Euro 2016 was not a factor in the region’s weak GGR performance.

“While many will blame the June weakness on certain customers redirecting their wagering dollars towards the Euro Championship, we do not think this had a material impact on June GGR in Macau.“

The average daily revenue (ADR) for the month was MOP 529 million, which was 11 percent lower than May ADR, added Bernstein in a note on Friday.

The brokerage said it maintains its view that 162H should see a pickup in year-on-year growth driven by a slowing decline in VIP GGR and new openings.

Last week, credit rating firm Moody’s predicted that Macau’s economy will see a 6 percent contraction year-on-year during 2016, with a 2017 recovery looking “increasingly unlikely”.

“We expect that growth will continue to contract over our rating horizon of the next two to three years, although the pace of decline should slow,” said Moody’s in its annual credit report of Macau.

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