Macau GGR up 17.1 percent in August

Macau gross gaming revenue grew 17.1 percent year-on-year in August, reaching MOP 26.6 billion (US$3.3 billion) according to the Gaming Inspection and Coordination Bureau (DICJ).

The results exceeded analyst expectations, who were expecting only a 15 percent year-on-year rise in GGR in the month.

On Saturday, Union Gaming said August was favorable with an additional Friday, while the weather was also favorable compared to last year when Typhoon Hato hit.

The month also saw a very high GGR/day rate, one of the highest this year.

“While last year’s weather, which included two big typhoons within one week of each other, made for a very favorable calendar this August and hence nice y/y growth, the reality is that the absolute level of GGR this August was the highest of the entire year, and only second to February (benefiting from Chinese New Year) on a GGR/day basis,” said the brokerage.

“This is cause for optimism as trends have accelerated into the end of summer.”

Union Gaming analysts said they believe that mass market will remain the strongest segment, north of 20 percent growth rate, while VIP will remain in the mid-teens growth.

“Based on recent conversations we’ve had with VIP junkets, we get the sense that business remains good and is maintaining a mid-teens trajectory despite fears to the contrary. To date, there has been no negative reaction (or even precautions) taken by VIP customers as it relates to trade wars and the potential impacts thereof. By and large, VIP and other premium customers have not changed trip frequency or their wallet size.”

Looking ahead, the analysts expect 18Q3 GGR to rise 14 percent.