GGR headed for 8-11 percent yoy increase: Bernstein

Macau has had stronger than expected gross gaming revenue for the first 11 days of September, said Bernstein in a note on Monday.

According to the brokerage, gross gaming revenue month to date is MOP 7.3 billion, implying an ADR of MOP 663 million.

“This is over 3 percent above similar period last year and well above last month daily rate of MOP 608 million,” said Bernstein.

Assuming an ADR of MOP590-620 million, Bernstein estimates September GGR to be MOP 18.5 – 19.1 billion, representing a year-on-year increase of 8-11 percent.

“Due to a ramp up of new projects and better than expected VIP, September GGR will be better than previous years compared to an historical average m/m decrease in September of -6 percent,” said the brokerage. “The stronger than expected month-to-date result seems to be driven by slightly high VIP hold rate and volume. GGR has also benefited from having 2 weekends in the reporting period through September 11th.

Along with the Parisian opening on September 13, and the Mid-Autumn Festival Holiday this week – September GGR will show positive growth, said the brokerage.