Gaming revenue up by 9.3 pct in May

2014/6/4

From：Macau Daily Times

Macau’s gambling revenue increased 9.3 percent last month, reaching MOP32.4 billion, according to data recently released by the city’s Gaming Inspection and Coordination Bureau. Results lagged behind analysts’ expectations, which were set at between 13 and 15 percent, with gambling revenue growth the slowest it has been in four months.
A Bloomberg report shows that the growth was lower than the median 14.5 percent estimate from analysts surveyed.
Aaron Fischer, Head of Consumer Research at CLSA Ltd., recognized that the result is “a little disappointing.” “It indicated there’s a sharp drop at the end of the month,” he added.
Government limits on gambling tables are believed to have played a role in slowing down Macau’s capacity growth. Moreover, growth has also slowed down amid concerns over a government crackdown on illicit debit card transactions, which prevents some gamblers from getting as much cash.
Galaxy Entertainment Group Ltd. fell the most in almost a month in Hong Kong trading, falling as much as 4.3 percent to HKD59.30, before trading at HKD59.75 as of 2:07p.m. yesterday in Hong Kong. SJM Holdings Ltd. slumped as much as 3.6 percent, while Sands China Ltd. dropped as much as 4.3 percent. Wynn Macau Ltd. declined by 3 percent.
The VIP market is still leading, accounting for 64 percent of casino revenue in Macau. The shift from VIP to mass-market segment gamblers, however, might limit revenue growth for casino operators, according to Bloomberg Industries analysts Tim Craighead and Brian C. Miller. China’s gross domestic product expansion helped with the VIP revenue growth, but both analysts think that it might slow with the economy.
Aaron Fischer added that he expects growth to rebound this year: “We’re still maintaining that the early growth will be at the mid-teens level.”
Over the first quarter of this year, gambling revenue rose 20 percent to MOP102.2 billion. China’s economy has expanded 7.4 percent over the first three months of 2014, the slowest growth since 2012.

Copyright@Macau Daily Times