June Macau revenue flat, long-term trends remain bullish, analysts say

    Macau’s June gross gambling revenue run rate was flat year-over-year at MOP28.3 billion ($3.5 billion) through to June 15, with table only GGR at $1.7 billion, Sterne Agee said.
    The firm is maintaining its forecast for June GGR ranging between a decline of 2 percent and a gain of 3 percent. The bias is towards the lower end of the range, it said.
    Part of the reason for the June slowdown will be the impact of the World Cup in Brazil, which ends on July 13th.
    During the previous tournament in 2010, June GGR was down 20 percent from the previous month.
    Sterne Agee said there have been reports of bars on Mainland China staying open 24 hours a day, with a surge in the purchase of fake “sick notes” as soccer fans seek to catch up on lost sleep. China accounts for more than 16 percent of the television audience during the World Cup.
    Bank of America/Merrill Lynch expects June GGR growth to be in the range of a drop of 5 percent to a gain of 11 percent.
    Despite the short-term volatility, analysts remain bullish about the longer-term prospects for Macau, with a report from Wells Fargo reaffirming its “outperform” rating on the operators.
    It said the market could remain “choppy” over the summer, but said the dips may be a buying opportunity.
    Bank of America also said it maintains a positive outlook on the back of a strong mass market.