Golden Week GGR mix disappoints; shares drop

Shares in Macau’s casino operators listed in Hong Kong fell on Monday after figures from the key Golden Week holiday showed a “disappointing” mix in gross gambling revenue.

According to Bernstein Research, GGR from Oct. 1 to 8th was MOP8.5 billion ($1.06 billion), which was in line with estimates. The figure is 49 percent higher than September and 9 percent higher than the same period last year.

According to the firm’s channel checks, VIP volumes were weak in the first half of the week, but picked up for mid-teens year-on-year growth for the holiday as a whole driven by a high hold rate. Mass GGR was up in the low single digits, despite strong growth in overall visitation during the period.

“While GGR was generally in-line with our expectations, the mix was poorer than we had expected and mass was disappointing,” it said.

As of the seventh day of the National Day Golden Week, Macau had seen 844,522 visitor arrivals, up 11.6 percent on the prior year. Some 647,352 Chinese visitors accounted for 67.7 percent of the total, up 9.6 percent year-on-year.

Bernstein says it estimates October GGR to be in a range of MOP23.7 billion to MOP24.3 billion based on average daily GGR of MOP660 million to MOP690 million for the rest of the month. That would represent an annual gain of 8.5 percent to 11.5 percent.

Shares in all of the Macau operators fell on the figures, with Galaxy Entertainment taking the biggest hit down more than 3 percent.