JP Morgan pencils in solid revenue growth for March


The local gaming industry is sticking with the rebounding trend for this month so far, analysts at JP. Morgan Securities (Asia Pacific) Ltd. believe, anticipating the month’s revenue growth to be between 10 per cent and 15 per cent year-on-year.
In its latest research note released yesterday the firm’s analysts, led by DS Kim, pointed out that the mass and VIP segments are both performing solidly on ma month to date basis, and expect the VIP sector to grow to the high teens while mass is also increasing from low to mid teens.
The analysts’ projected growth rate for the month suggests a daily run rate of between MOP640 million (US$80 million) and MOP670 million.
“This would make 1Q17E [gross gaming revenue] grow 11 per cent to 12 per cent year-on-year and 3 per cent to 4 per cent quarter-to-quarter, to the highest level in eight quarters; the sector’s sequential profit expansion story remains intact, in our view,” the analysts concluded.
Citing their checks, the firm projected that the city’s gross gaming revenue stands at MOP7.9 billion for the first 12 days of the month, implying average daily revenue of some MOP660 million.
‘We stay broadly constructive on the sector, as the industry has entered genuine upturns in demand, profits and cash flows for 2017 and onward,’ they added.