March GGR misses analyst estimates

Macau gross gaming revenue declined 16.3 percent year on year in March, marking the 22nd consecutive month of decline.

Gross gaming revenue was MOP 18 billion (US$2.3 billion), down 16.3 percent from MOP 21.5 billion in 2015 according to data from the Gaming Inspection and Coordination Bureau.

The results were slightly down from the analyst estimates of a 15.5 percent decline, according to Bernstein.

According to the brokerage, ADR for the month was MOP 580 million, 14 percent lower than February ADR of MOP 683 million.

Accumulated gross gaming revenue from the first three months of 2016 is MOP 56.2 billion, representing a year on year decline of 13.3 percent for the same period in 2015.

According to Union Gaming, March GGR would likely have been well into the MOP 18-19 billion range, but said the bad weekend weather in mid-March affected the results.

However, Union Gaming says they are optimistic of the results this month.

“The underlying GGR story feels to us like it continues to improve with a gradually shifting revenue mix within the new normalized range of MOP 17-18 billion,” said Union Gaming, who added that they they expect the Macau market to experience further year on year declines until June.

Last week, Paulo Martins Chan, the director of Macau’s gaming regulator, said he believed the decline in gross gaming revenue (GGR) should slow down this year.

The Gaming Inspection and Coordination Bureau chief made the comments in an interview with Radio Macau. “The most difficult times are now behind us. I think that, if there’s a decline this year, it will be a slight decline,” said Chan.