A Golden October

198

Analysts at Morgan Stanley state that gross gaming revenues in September have fared well so far, while advance bookings for the ‘longer than usual’ Golden Week in October are expected to be ‘strong’.
The firm believes the considerable property damage caused by Typhoon Hato led to incremental costs related to overtime during the storm, as well as increased staffing for clean-up activities and other unforeseen impacts, such as Wynn Palace’s maintenance cranes being so severely damaged that the property had to rent cranes from Hong Kong.
‘However, these issues appear temporary and insurance should pay for most of the damage,’ the note concluded.
Morgan Stanley is predicting gross gaming revenues in September to reach MOP21.19 billion (US$2.63 billion), a 15 per cent year-on-year rise, with average daily revenues estimated at MOP706 million.
The firm also estimates that the third quarter of this year will see a 22 per cent year-on-year increase in revenue, reaching MOP66.8 billion, with expected daily revenues of around MOP726 million.
In terms of mass market gaming revenues, Morgan Stanley analysts estimate July and August saw 12 per cent and 9 per cent year-on-year increases, respectively, with the firm believing the sector will finish the quarter with MOP29.94 billion in revenue, 9 per cent more than the same period last year.
Regarding VIP, analysts expect the third quarter will see the largest yearly increase of 2017, rising 37 per cent to MOP33.32 billion.
The firm also considers that the recent opening of more VIP rooms by smaller junkets – such as the 10-table VIP room opened by local junket operator David Group at Galaxy last week – will drive VIP growth above 20 per cent year-on-year in the ‘next few months of the year’.
David Group has also opened VIP rooms this year at Melco Resorts’ Studio City and at the Macau Jockey Club Casino in the Macau Roosevelt Hotel.