Macau’s VIP gaming sector may have recorded its first year-on-year quarterly growth in 16Q4, according to analysts at JP Morgan Securities.
“We estimate VIP GGR grew by 15 percent to 16 percent quarter-on-quarter or 8 percent to 9 percent year-on-year [in the fourth quarter of 2016],” said analysts DS Kim and Sean Zhuang, reaching US$3.5 billion in the quarter.
The brokerage estimates that full VIP GGR in Macau was down 12 percent in 2016, while mass market revenue was up 6 percent.
Macau’s raked in a total of MOP 19.8 billion (US$2.5 billion) of gaming revenue in December, a 8 percent year-on-year increase, according to data from the Gaming Inspection and Coordination Bureau.
The full-year finished with MOP 223 billion, down 3.3 percent compared to 2015.
The breakdown between VIP and mass gaming revenues has not yet been released by the DICJ, but it is expected to be available soon.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.