MACAU BUSINESS
T
he city’s gaming industry saw total gross revenue post the fourth consecutive and best gain in the month of November following a slump of 26 months, up 14.4 per cent year-on-year to MOP18.8 billion (US$2.4 billion), official data released recently by the Gaming Inspection and Co- ordination Bureau reveals. Accumulated gross gaming revenue for the eleven months of the year has totalled MOP203.4 billion, representing a decrease of 4.3 per cent compared to the same period last year.
The J.P. Morgan analysts also believe the upturn will be sustainable, as supported by a market-wide recovery in nearly all segments and properties
Despite representing a month-on-month decline of
13.8 per cent from MOP21.8 billion in October, analysts at J.P. Morgan reckon the result is ‘quite impressive’ and is primarily driven by the turnaround of the VIP segment. ‘Average daily revenues came in at MOP626 million
[per day], which is quite impressive considering November is a seasonally soft month,’ wrote the brokerage in a note yesterday. ‘Note that this is even higher than recent holiday months, such as May (MOP593 million per day) or July or August (MOP590 million per day).’
Strong VIP turnaround The analysts, led by DS Kim, believe gross gaming
revenue derived from the VIP market jumped more than 15 per cent year-on-year in the month, which they describe as ‘a significant turnaround’ compared to a drop of 7 per cent for the third quarter or the increase of five per cent in October. ‘Based on checks with junkets […] VIP is seemingly
entering an up-cycle here, as some pent up demand is finally returning after [over two] years of downturn,’ they wrote. The turnaround, in the analysts’ opinion, is
boosted by ‘a combination of better macro backdrop, improved player confidence, better junket liquidity and recent new openings.’ The J.P. Morgan analysts also believe the upturn will be sustainable, as supported by a market-wide recovery in nearly all segments and properties, the return of both dormant and new high rollers, as well as continued strong growth in the city’s quality visitations such as individual travellers and overnight visitors. ‘We believe the industry has entered genuine
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