HSBC lowers Macau casinos 2013 estimate

2013-3-13

From：Macau Business

HSBC bank has just revised downward its growth estimate for Macau’s gaming industry for full-2013.

In a report released today, analyst Sean Monaghan decreased HSBC’s 2013 gross gaming revenue growth estimate to 12 percent, down from 13.5 percent.

Last year, Macau’s casinos reported gross gaming revenue of MOP304.1 billion (US$38 billion).

The bank has also revised downwards its 2013 VIP growth to 6 percent from 7.9 percent previously, and has adjusted mass growth marginally to 25.7 percent, down from 26.1 percent.

Mr Monaghan explains that this change is an adjustment based on actual reported growth in January and February.

He believes the political issues overhanging the VIP market will dissipate mid year, but will still likely impair VIP growth slightly in the first half of the year.

“Our market review finds political pressure relating to the transition in Beijing as being the primary factor causing the slowdown in VIP growth.

“We see no pressure on mass gaming which continues to grow strongly,” he wrote.

Despite the slightly slower forecast for 2013 gross revenue growth, the bank estimates 2013 EBITDA (earnings before interest, taxation, depreciation and amortisation) growth at 25 percent, up from 23 percent previously.

Copyright@Macau Business