Brokerage firm Sanford C. Bernstein Co. LLCA and analysts at Telsey Advisory Group expect the city’s gaming revenue to increase some 24 per cent to 26 per cent.
Vitaly Umansky of Bernstein revealed that the gross gaming revenue for the first 20 days of August reached MOP15.4 billion, with the average daily rate hitting MOP770 million. The latter amount posted an increase of 4 per cent compared to last month and 32 per cent over a similar period last year.
Bernstein explained that the growth in the average daily rate last week was the result of ‘strong visitation (occupancy rates and roomrates increased last week) and popular multi-day concerts at The Venetian’.
The past several weeks registered an increase of high single digits month-on-month for mass performance, with middle single digits for VIP, stated Bernstein.
Similarly, according to the Telsey group, revenue growth ‘slowed modestly’ during the month due to seasonality as expected.
Nevertheless, the market continued to grow strongly, particularly in Cotai. The recent player loss in the VIP of Las Vegas Sands (LVS) properties in Macau as reported by the press will pull up the operator’s Macau revenue in August, wrote the Telsey group.
Bernstein analysts pointed out in their weekly report that the weekly channel checks appear to be ‘less than accurate and more volatile’ hence there should be greater consideration of the weight of overall gaming revenue numbers.
Telsey analysts, meanwhile, observed that gaming operators’ stocks ‘remain positive’, but also surmised that ‘the competitive landscape remains somewhat in flux through the remainder of the quarter and perhaps the year’.
The group also pointed out that the opening of The Parisian Macao and Wynn Palace in the third quarter and August of last year, respectively, had made the fundamental evaluations for this August ‘challenging’.
Telsey conclusively anticipated that the share of LVS and Wynn be ‘volatile but essentially flattish in performance through the remainder of the year’, holding a positive outlook for MGM’s soon to be opened Cotai property.
