Macau GGR shows signs of stabilization, Bernstein says

 

Macau December gross gambling revenue was MOP 18.3 billion (US$2.2 billion), a decline of 21.2 percent compared to 2014, according to Bernstein. It represents the smallest year on year decline since Feb. 2014.

Bernstein believes the tapered decline was due to a weakened base in Dec. 2014 during Xi Jinping’s visit to Macau. As well as this, Macau observed higher tourist arrivals, with a nearly 10 percent increase year-on-year for the month of December.

Bernstein expects the Macau market GGR to stabilize, and the year-on-year percentage decline to improve.

“Looking ahead, we expect Macau market GGR to stabilize on a sequential basis and y/y % declines to become less bad. As business migrates to Cotai with new properties opening and ramping up, casino operators with Peninsula-concentrated product portfolios (e.g. Wynn, MGM and SJM) will face market share headwinds.”