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Mass grows double digits in 16Q3: Union Gaming

With Macau’s six operators having reported their third quarter results, Union Gaming says mass revenues showed solid growth in the quarter.

“What we found was very encouraging and backs up various management commentary of notable mass market strength and our view that we're seeing an inflection point,” said the brokerage in a note on Thursday.

According to their figures, Macau’s mass market GGR grew 11 percent year-on-year in 16Q3, which it says was helped by new supply.

Even when stripping out the new supply, the brokerage said ‘same-store’ mass GGR still grew by 2 percent.

The brokerage also noted that premium mass could be inflecting too.

“This makes sense in that premium mass customers, for the same reason as VIP customers, shied away from Macau in the context of the anti-corruption drive. Two+ years on, we think some number of them are feeling more comfortable about their situation and are returning to the market.”

The brokerage noted Sands China premium mass GGR grew 16 percent in 16Q3, the first year-on-year growth since 2014.

“At the same time, the delta between the DICJ- and operator-reported mass data widened this quarter, which could also be suggestive of an improving premium mass. Finally, with VIP growth on the verge of turning positive, we would expect premium mass to do the same if it hasn't already.”

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