May gaming revenues to grow up to 17 percent

2013-5-15

From：Macau Business

Japanese brokerage house Nomura is expecting gaming revenues to normalise in May, while Wells Fargo forecasts an increase of between 13 and 17 percent.

Nomura expects May to finish at around MOP30 billion (US$3.75 billion), up by 15 percent year-on-year, instead of last week’s forecast of 15 percent to 19 percent.

It cited its Macau gaming sources indicating that the first 12 days of May delivered MOP12.65 billion of gaming revenue, implying a month-to date run rate of MOP1.05 billion per day.

“The past week’s run rate normalised to MOP876 million per day post the Golden Week holiday in May,” it said.

Investment bank Wells Fargo’s analyst Cameron McKnight wrote in a note that as expected, gaming revenues trailed off following Golden Week with revenues down 37 percent week to week to MOP850 million.

“Following prior year trends, we would expect the average daily rate to recover as the month progresses,” the analyst said.

In addition, Nomura increased its estimate for year-on-year revenue growth in the calendar year 2013 to 15 percent, up from its previous estimate of 13 percent.

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