Wells Fargo revises down Macau GGR estimate for October

October Macau gaming revenues are expected to decline 27 percent to 29 percent year-on-year, Wells Fargo says, compared to the research house’s prior estimate of down 26 percent to 29 percent.

Checks suggest average daily revenues were around MOP586 million last week, down 29 percent compared with Golden Week’s MOP827 million, Wells Fargo said in a note.

“We project -27% to -29% yr/yr for the month of October.”

This assumes roughly MOP570 million to MOP580 million for the rest of the month, and sequential growth of approximately 16 percent to 17 percent month-on-month – “slightly lower than historical October seasonality of up 20% m/m, on average.”

“We note that weekly numbers have been volatile since early June and expect this pattern to continue given instability in the VIP segment.”