Pouring gains in April

Gross gaming revenues in Macau reached MOP20.16 billion (US$2.51 billion) in April, a 16.3 per cent year-on-year increase from the same month of last year, marking the ninth consecutive month of year-on-year gaming increases, according to data from the Gaming Inspection and Co-ordination Bureau (DICJ).
In cumulative terms gross gaming revenues in the city amounted to MOP83.64 billion in the first four months of this year, a 13.8 per cent rise from the same period of last year.
The results surpassed analysts’ estimates, with analyst firm Wells Fargo having predicted a yearly growth of between 10 per cent and 15 per cent in April, while analysts from Deutsche Bank had predicted a 14.7 per cent year-on-year rise.
According to Wells Fargo senior analyst Cameron McKnight, the average daily revenue’s (ADR) 16 per cent year-on-year increase to MOP672 million in April was mainly caused by an ‘easy comparison’ with the same month of last year when a 10 per cent year-on-year decrease was registered.
Despite the average daily revenue yearly increase, analysts from both firms noted that win per day dropped 1.9 per cent month-to-month in April.
The Wells Fargo analyst considered that the gaming market in Macau has registered ‘recent stabilisation’ with some market growth being ‘driven by Chinese monetary stimulus and the re-inflation of the Chinese housing bubble’.
However Mr. McKnight pointed out these two factors ‘won’t drive prolonged, above trend growth’.

Ready for May
Deutsche Bank analysts estimate a 15 per cent year-on-year increase in revenues will be registered in May with gaming revenues reaching around US$2.64 billion.
Wells Fargo predicted May will register a yearly increase in gross gaming revenues between 14 per cent and 18 per cent, with average daily revenues expected to reach between MOP675 million and MOP700 million.
With regard to the second quarter of this year, Deutsche Bank analysts predicted growth will undergo an acceleration from the first three months of this year, and after taking into account the better-than-expected April results they believe gaming revenues could grow more than 18.2 per cent year-on-year between April and June.
This expected improved growth in the second quarter of this year was mainly based upon the ‘sequential acceleration and double digit’ year-on-year growth registered in the VIP sector between January and March and the ‘non-intimidating’ results seen in the second quarter of last year, the Deutsche Bank analysts indicated.
In statements to news agency Bloomberg, analyst Grant Govertsen from Union Gaming Group LLC stated the firm had “become incrementally more bullish with the sustainability of ongoing VIP trends over recent weeks” and that “in the short term, VIP is going to be the biggest driver” of gaming revenues in Macau.