CNY revenue disappoints despite higher visitation

Gross gambling revenue over the Chinese New Year period was disappointing, despite higher visitation to Macau, according to Bernstein analysis.

According to the firm’s channel checks GGR from Feb. 1 to 19 was MOP13.5 billion, making an average daily rate of MOP710 million. The ADR is 16 percent less than January and down 3 percent from December.

Bernstein says assuming ADR remains in the range of MOP1.05 billion to MOP1.25 billion for the rest of the month, February’s GGR will be flat to up 8 percent. The weak figures come despite strong visitation with total arrivals up 10 percent and Chinese arrivals up 18.5 percent.

“While visitation was robust during the first few days of the long holiday, many large players in both VIP and Premium Mass have stayed away (as is sometimes the case). If the remaining nine days of the month are weaker than we expect, February can easily wind up being y/y negative,” the note said.