Daily gaming revenues have dropped by more than half after the Labour Day Golden Week, analysts from Sanford C. Bernstein have indicated.
According to the brokerage daily gross gaming revenues during the week of May 9-16 declined by 53 per cent to about MOP236 million when compared to the MOP500 million reported in the first 8 days of May.
During the Golden Week holiday between May 1-5 average daily revenues reached some MOP600 million.
Bernstein analysts considered the results for the period after the holiday week to be ‘lower than expected’ and 16 per cent lower than average daily rates reported in April.
‘There have been some new COVID cases emerging in parts of China since last week which may have led to some of the slowdown,’ the brokerage stated in a note.
Daily visitor arrivals to and departures from Macau averaged 58,000 during May 10-16 slightly down from the prior week but up from the 30,000-40,000 earlier this year.
The brokerage considered that while visitation remained stable, gaming results weakness signals many of the visitors to Macau are largely lower end tourists who are travelling due to travel incentives offered.
‘Any easing of travel restrictions should meaningfully increase visitation and more importantly, GGR, but COVID outbreaks could derail travel temporarily’.
Month to date gaming revenues have reached MOP6.1 billion between May 1 and 16, representing an average daily rate of MOP384 million, down 54 per cent when compared to May 2019.
‘VIP hold is normal compared to April’s high hold, and VIP volume saw a 40-50% increase in average daily rolling volume m/m. Average daily mass GGR is up 35%-40% from April,’ the note added.
