Xi Jinping dampens June gaming revenue

Gross gaming revenue in Macau for the month of June reached MOP 20 billion (US$2.5 billion), representing a year-on-year growth of 25.9 percent, according to the latest official figures.

The growth was below analyst consensus, which forecasted around 30 percent year-on-year growth in the month.

Union Gaming said the drop was likely primarily caused by the visit of PRC president Xi Jinping to Hong Kong.

“We note that Hong Kong has been in a state of virtual lockdown over the last several days and this likely had the effect of curtailing high-end visitation to Macau during this period,” said the analysts in a note over the weekend.

ADR for the last five days of the month, during the president’s visit, was only MOP 428 million, noted Bernstein, compared with the month’s ADR of MOP 666 million. 

Accumulated gross revenue for the first half of the year reached MOP126.4 billion, a 17.2 percent year-on-year increase from the MOP107.8 billion figure in 16H1. June’s GGR figures also brought 17Q2 revenue up 21.9 percent year-on-year.

Looking ahead, Union Gamking said that July may also see a slow start due to the president’s visit, forecasting GGR to reach 18 percent year-on-year growth in the month.