Macau should look to 2012 revenue comparisons, analysts say

Analysts following the Macau gaming sector, where revenue is expected to decline for a fifth month in October, say investors should look to 2012 for growth comparisons rather than 2013, which registered exceptional growth of some 32 percent.
According to local media reports some brokerages are now turning to two-year comparisons to eliminate the effect of the record 2013 gains, which are amplifying the magnitude of the current slowdown, in a bid to gain "a clearer picture".
Among the forecasts, Wells Fargo is expecting a 19 percent decline, down from a revised figure of a 15 percent decline, while Deutsche Bank says gaming revenues will be down by 18 percent. In October last year, gaming revenues in Macau jumped by 31.9 percent, the biggest increase of 2013.
‘It’s important to note that October 2013 is a tough [month] to compare as VIP and mass revenues grew by 28 percent and 45 percent, respectively’, said Wells Fargo in a note to clients. But when compared against October 2012, gaming revenues in Macau for October 2014 are forecast to be up 12.9 percent.