Macau’s recovery is ‘definitely’ mass-led, with mass GGR growth outpacing VIP GGR growth in 16Q4, according to Union Gaming in a note on Wednesday.
Following the release of SJM and Galaxy results on Tuesday, the brokerage notes that the mass segment achieved 12 percent growth, while VIP GGR growth grew only 10 percent.
“Looking at the other five operators (ex-Wynn), we find that VIP growth rates were in a fairly tight band between -4 percent (MPEL) and +4 percent (Galaxy) during 4Q16. This makes sense as virtually every conversation we’ve had recently in Macau has leaned towards a more cautious outlook on VIP given a raft of potential VIP headwinds,” said the brokerage.
“In other words, a significant disparity between growth rates of mass and VIP, and inline with our thesis that other than special periods like CNY, mass market should outpace VIP,” it added.