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VIP to bounce back faster than mass

The aftermath left by Typhoon Hato and Pakhar may cause a weaker GGR result for August, but will not have any permanent impact, say Morgan Stanley analysts.

The brokerage says it expects Macau GGR to rebound sharply this week and in September, but noted mass may be slower to pick back up compared to VIP.

“We visited Macau last Friday. While many tables were closed on the mass floor, the tables in operation were mostly occupied, and minimum bets were not lowered, suggesting strong demand,” said the analysts.

“Mass revenue could be lower this month due to cancellation of some group tours and partial closure of mass floors last week,” it added.

The disruptions could result in August GGR being up 18 percent year-on-year, down from previous estimates of 24 percent year-on-year.

September GGR estimates however, remain the same at 17 percent year-on-year growth.

That being said, additional operating expenses and maintenance costs is likely to mean lower EBITDA margins in 17Q3, said the brokerage.

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