Macau gaming revenue strong in early January: Bernstein

Macau has posted a particularly strong start to the new year, reporting a ADR of MOP 715 million, a 31 percent increase over December’s ADR, said Bernstein in a note on Monday.

“GGR during the Jan 1 New Year holiday was quite strong, and the strength carried over into the weekdays, in particular for the VIP and premium mass. VIP in particular was strong in both volume and hold (where channel checks indicated hold of over 3.2 percent), said Bernstein.

Based on the recent performance, the brokerage says they have revised its January GGR estimate of Macau to MOP 20.5 billion to MOP 21 billion, which would represent a year-on-year increase of 10 – 12 percent year-on-year.

However, for the remainder of January, Bernstein says it expects a softening of GGR.

“With Chinese New Year commencing on January 28, the first two days of the holiday are generally softer compared to the latter part of the week.  We expect strong GGR performance at the end of January preceded by softening in GGR over the next 3 weeks,” said the brokerage.

“Upside GGR in January would be largely driven by stronger than anticipated VIP volumes or high hold,” it added.