Macau’s operators will look to the VIP sector to turn around March revenue figures after a weaker than expected start to the month.
According to a note from brokerage Sanford C Bernstein, GGR is tracking below original estimates at around MOP$736 million per day for the first 11 days of March, representing a 15% decrease compared to February 2018 and a 13% decrease when compared to January. Although the monthly indicator is up 12% year-on-year, average daily revenue over the most recent seven day period from 5 to 11 March fell to MOP$728 million.
However, Bernstein sees potential bright side during the latter stages of the month, noting that, “Several junket spring dinners will be held later this month which should increase GGR run rate above the current month-to-date trend.” It added that there was also room for VIP hold to increase and VIP volumes to improve.
Bernstein’s updated estimations set Macau’s GGR for the whole month of March between MOP$23.1 billion and MOP$23.9 billion, up by between 9% and 12% year-on-year. The forecast assumes the GGR average daily rate will oscillate between MOP$750 million and MOP$790 million for the remainder of the month.