October GGR rockets up 22.1 percent

Macau registered a 22.1 percent increase in gross gaming revenue for the month of October, reaching MOP26.6 billion (US$3.3 billion), according to data from the Gaming Inspection and Coordination Bureau (DICJ).

The result was above analyst expectations, with Bernstein estimating only a 13-15 percent increase in a note last week. ADR for the month came in at MOP859 million.

While volumes were strong, Bernstein said an elevated VIP hold rate and hold in premium mass led in part to the surprise results. VIP was likely up over 30 percent with mass in high single digits.

"Our on-the-ground observations continue to see a higher quality customer coming to Macau, which, to some extent, is replacing a lower-quality day trip customer from years past," commented Union Gaming analysts. "We continue to believe a big driver of this customer is the availability of hotel rooms (both from a marketing / comping perspective as it relates to higher net worth individuals and from a value perspective as it relates to cash paying FIT customers)."

Looking to November, Bernstein says it is estimating a low teen percentage growth - with any upside likely driven by VIP.

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