Typhoon Mangkhut dampened otherwise strong Sept GGR

Macau GGR in September rose only 2.8 percent year-on-year – affected by casino closures during Typhoon Mangkhut and related disruptions.

According to data from the Gaming Inspection and Coordination Bureau (DICJ), Macau GGR reached MOP21.95 billion, up 2.8 percent. The amount recorded in September represents a 17.3 percent decrease from August 2018, which recorded GGR of MOP26.5 billion.

This brought accumulated GGR for the first nine months to the year to MOP 224.1 billion, up 15.9 percent year-on-year.

Analysts said the 33-hour-closure of casinos during Typhoon Mangkhut and the post-typhoon transport disruption and clean-up were to blame.

The results were below Bloomberg consensus of 7 percent, but mostly in-line with Bernstein, Deutsche Bank and Union Gaming analysts who revised their expectations following the typhoon.

Bernstein said the negative impact of the typhoon was partially offset by several new room opening/ expansions events from junkets in the last week of September.

However, if it wasn’t for the typhoon and closures, Union Gaming analysts said that GGR growth would likely have been quite close to initial expectations of 14 percent.

“Importantly, all of the operators we have spoken with have confirmed that they have not yet seen any changes in customer behavior (e.g. trip frequency, wallet size), nor are they seeing any material issues or concerns with their junket partners,” said the brokerage.

The results brought 18Q3 GGR up 10.2 percent year-on-year, the weakest quarterly growth since 16Q3. Bernstein analysts said it estimates VIP to be up 4 percent year-on-year in the quarter, while mass saw a more robust growth of 16 percent.

Looking ahead, Bernstein said it estimates growth of 4-6 percent year-on-year, while Deutsche Bank estimates growth of 5.1 percent year-on-year.

Union Gaming made a slightly higher estimate of 7 percent, adding there could be potential upside in the form of deferred Mangkhut trips.

Previous articleMayor Hayashi sees no room for two IR bids in the capital region
Next articleMeg-Star unveils its largest VIP club at Venetian Macao

Related Articles

VIP baccarat accounts for 48% of Macau Q3 GGR

VIP baccarat revenue was up 51 percent quarter-on-quarter and made up almost 48 percent of the revenue for the quarter, while mass market revenue jumped 77 percent from Q2, accounting for 38 percent overall, according to government figures.

Adriano Ho moves into DICJ role on June 10

The Gaming Inspection and Coordination Bureau’s incoming director, Adriano Ho, is set to officially take office on June 10, according to local reports citing Macau secretary for Economy and Finance Lei Wai Nong. Last week it was reported that Adriano Ho would be taking over the role of DICJ director from Paulo Martins Chan, who […]

Paulo Martins Chan to step down as DICJ boss

Paulo Martins Chan will be stepping down from his position as the head of the Gaming Inspection and Coordination Bureau in June, to be replaced by Adriano Marques Ho, an advisor to Secretary for Security Wong Sio Chak, according to a report from Macau News Agency.  Sources told MNA that Chan will return to the […]

DICJ asks operators to reinforce preventative measures

The Gaming Inspection and Coordination Bureau (DICJ) has asked its local gaming operators to reinforce preventive measures in their casinos, amid the outbreak of the coronavirus in Mainland China, local media reports.  According to Chinese authorities, the death toll from the new virus rose to six, with 258 confirmed cases recorded so far.  The Macau […]

VIP gaming revenue down 23.1% in 19Q4: DICJ

VIP gaming revenue’s share of Macau gross gaming revenue decreased year-on-year in the fourth quarter of 2019, according to data released by the Gaming Inspection and Coordination Bureau.  VIP gaming revenue, represented by VIP baccarat, fell 23.1 percent year-on-year to MOP32.3 billion (US$4 billion), with the year-on-year not as far as analysts had been expecting.  […]

Govt to ignore gaming equipment reversion clause

The Macau government is set to ignore a clause in the concession contract of SJM and MGM, which requires the companies to hand over casino and gaming equipment to the government in March next year. According to a report from Gambling Compliance, under the concession contract, each of Macau’s concessionaires is required to ‘automatically revert’ […]

Illegal online gambling difficult to eradicate: Chan

The director of the Gaming Inspection and Coordination Bureau said it is difficult for authorities to “completely eradicate” illegal online gambling operators, as servers are usually hosted outside its jurisdiction and target gamblers from mainland China, Macau Business reports.  “What we can is to do propaganda to raise awareness and inform that it is illegal… […]