“Grind” and “base” mass customers continue to be the strongest segments in the market, said Union Gaming in a note on Tuesday commenting on recent 16Q3 data released by DICJ.
According to the brokerage, the third quarter saw live multi game (LT Game stadiums) GGR increase 16 percent year-on-year, Sic-Bo GGR up 12 percent year-on-year, while slot machine GGR was down 3 percent year-on-year, but up 8 percent quarter-on-quarter.
“Collectively the above three categories accounted for nearly 10 percent of total GGR in 3Q16,” said Union Gaming.
On the other hand, Baccarat accounted only for 87 percent of total GGR. “…suggesting that the non-baccarat games favored by lower tiers of mass are gaining traction,” said the analysts.
Total baccarat GGR (VIP and mass) was up 0.7 percent while non-baccarat grew 4.1 percent in the quarter.
“Our long-term Macau thesis is predicated on our view that the lower tiers of mass represent the bulk of the future profit growth story in Macau and the best place to be is therefore the west side of Cotai rather than on Millionaire’s Row that forms much of the east side of Cotai,” said the brokerage.
On Monday, Morgan Stanley analysts noted that Macau gaming industry EBITDA could see its first positive year-on-year growth in 16Q3 after two years of decline.
“Company EBITDA could grow to US$1.57 billion (+5% YoY, +7% QoQ) due to cost cutting, seasonality and higher rental income partially offset by increased operating expenses from the opening of the Parisian and Wynn Palace,” said the brokerage.