Macau GGR down 8.5 percent on weak VIP

The Gaming Inspection and Coordination Bureau over the weekend that Macau GGR for November came in at MOP22.9 billion (about US$2.8 billion), down 8.5 percent year-on-year.

In the background to the weaker figures are the impact of the US-China trade war, Chinese media criticism of top junket operator Suncity, and the protests in neighboring Hong Kong.

Nevertheless, these results were somewhat better than analysts’ expectations.

“Overall, we think VIP performance was again challenged, with VIP GGR down in the mid to high 20% range year over year,” Deutsche Bank wrote in a note to investors.

“We expect December to be challenged with visa restrictions ahead of the visit from President Xi Jinping and continued headwinds in the VIP segment. That said, we think there is potential for flat, and potentially positive, comparisons to emerge in the 1Q20, should the seasonal stability exhibited over the past two months remain firm,” they added.