Macau (MNA) – Gross gaming revenue (GGR) in November exceeded expectations with a 22.6 per cent growth year-on-year to MOP23 billion (US$2.88 billion), research reports by Bernstein and Union Gaming showed on Friday.
Union Gaming said that the figures beat Bloomberg consensus of over 19 per cent, with the market now up 19.5 per cent year to date.
Bernstein highlighted that in the last four days of November the average daily revenue (ADR) was MOP871 million, much higher than the monthly ADR of MOP768 million (11 per cent below compared to October).
‘With December historically being seasonally stronger than November, and with this December having a favourable calendar (one additional Sunday relative to last year), we forecast 23 per cent growth for the month,’ Union Gaming research note says. ‘This would bring GGR to +20 per cent for the full year.’
‘We continue to voice caution about the strength (and volatility) surrounding VIP. High hold rates in VIP along with continued volume strength creates volatility and lack of ability to more accurately forecast the monthly trend,’ Bernstein research says.
Regarding the same segment, Union Gaming says that ‘based on our recent on-the-ground conversations with those in the VIP space we believe that VIP could likely be a 20 per cent + grower in 2018.’
Union Gaming report also says that the quality of visitors is increasing. A higher number of high quality rooms has a key role in such process. ‘In this regard, Melco Resorts and MGM China are well positioned in 2018 to capitalize on this dynamic with new room supply in Morpheus and MGM Cotai, respectively,’ Union Gaming says.
