February GGR rises 17.8 percent

Gross gaming revenue for the month of February reached MOP 23 billion, with 17.8 percent year-on-year growth, according to the latest figures from the Gaming Inspection and Coordination Bureau (DICJ).

The results were higher than market expectations, with analysts previously forecasting between 5 – 11 percent growth for the month.

“The implied ADR for the last 9 days of the month was MOP 744 million and the period exhibited strong rebound in what is normally a quieter post-CNY period,” said Bernstein in a note on Wednesday.

Bernstein added that it believes strong VIP performance in the month was the main reason for the higher-than-expected results.

“We believe a large portion of the upside surprise in February (especially the latter part of the month) was strong VIP (strong volumes, somewhat helped by high hold). VIP growth may have likely shown mid-20s percent growth year-on-year,” said Bernstein.

“The last week of the month was helped by several junket marketing events, including Sun City’s anniversary party, which brought in significant increase in VIP players and agents,” added the brokerage.

The latest results brings Macau’s 2017 accumulated gross revenue to MOP 42.2 billion, up 10.6 percent compared to MOP 38.2 billion in the same period in 2016.

In January, Macau reported GGR of MOP 19.3 billion, an increase of 3.1 percent, missing consensus estimates due to a slowdown ahead of Chinese New Year.