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Macau off to slow start in June

Macau table-only gross gaming revenue was MOP3.3 billion ($410m) from June 1 to June 7, according to checks made by Sterne Agee.

Including slot assumptions, the June GGR run rate indicates a decline of 46 percent year on year, or MOP14.6 billion.

Sterne Agee analyst David Bain said the results are disappointing given the recent opening of Galaxy Entertainment’s Galaxy Macau Phase 2 and Broadway Macau.

“Our June GGR growth forecast range of between -33 percent and -38 percent YoY remains unchanged. Given abnormal market share and other checks, we believe hold negatively impacted early June results. Still, results are disappointing especially given a two week proximity to the opening of Galaxy’s Phase 2.”

He added that while Macau should continue to generate sequentially “less bad” results from a growth bottom in February, Sterne Agee expects near-term 15Q2 will result in downward revisions and additional caution directed at CY16 market in light of new smoking restrictions.

“Our contacts state additional VIP rooms are also likely to be downsized or closed in the near to intermediate future (demand issue).”

According to SA checks, market share results from June 1 to 7 for table-only market share results are as follows: SJM at 21.1 percent, Galaxy at 23.9 percent, LVS at 20.2 percent, MPEL at 16.0 percent, WYNN at 11.3 percent, and MGM at 7.6 percent.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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