Nov GGR headed for 7 to 9 percent growth

Macau’s gross gaming revenue (GGR) month to date is estimated at MOP7.9 billion ($988.7 million), implying an ADR of MOP607 billion for the month, according to channel checks from Bernstein.

The results, as expected, are below October’s ADR of MOP 704 million – which included the Golden Week Holiday.

However, the last week (November 7-13) performed well, up 13 percent over the similar week in 2015.

“The GGR results during the second week were positively impacted by some sequential pick up in Mass and VIP, but it is estimated that the strength mainly came from the VIP sector, with the help of a slightly high hold rate,” said the brokerage in a note on Monday.

“Assuming an ADR of MOP 570-590 million for the remainder of this month, October GGR would be in the range of MOP17.5bn and MOP18.0 billion. This would represent a year-on-year increase of +7 percent to +9 percent, slightly better than our previous estimate on better weekly performance MTD.”

The brokerage also notes it foresees a dampening of revenues due to the Macau Grand Prix from November 17-20.

Wells Fargo analysts said the weekly revenue could decelerate by around 5 percent during the week.

“The event typically dampens gaming revenues due to road closures and time away from gaming.”