Macau GGR decline extends into August, Sterne Agee says

    Macau’s gross gaming revenue has continued to decline in the first two weeks of August, with the run rate down 1.5 percent year-over-year to MOP30.3 billion ($3.8 billion), including slot assumptions, according to Sterne Agee checks. From Aug. 1 to Aug. 17 table-only GGR was MOP15.9 billion ($2 billion).
    The firm said its August outlook remains unchanged for a range between a decline of 3 percent to a gain of 2 percent.
    “We view CY14 as a transition year in Macau ahead of multiple years of sequential market growth driven by visible, high-margin mass volumes,” it said in a note.
    For the third quarter, the firm expects a dip of 3 percent in GGR, pulled down by a 14 percent drop in VIP revenue. Mass market revenue is expected to jump 20 percent.
    “We continue to anticipate the worst market growth results in mass/VIP since 3Q09/2Q09,” it said.
    Las Vegas Sands is having a strong month, given its market-leading position in the mass gaming market and is likely to gain even more share over time due to its high room capacity.
    During the period under review, Sterne Agee estimates LVS had the top market share at 22 percent, up from 22.8 percent in July. SJM Holdings was at 20.8 percent, Galaxy Entertainment was 20 percent, Melco Crown Entertainment was 12.9 percent, Wynn Resorts at 10.2 percent and MGM China at 10.1 percent.