A banner 12 weeks for mass-market gaming revenue saw Macau’s casinos hit MOP86.2 billion (US$10.7 billion) in combined GGR for the quarter ended 30th June, an increase of 16% over the same period a year ago.
Results released by the government’s Gaming Inspection and Coordination Bureau show mass GGR was up 30% over Q2 2012, totaling MOP 24.6 billion. Revenue from VIP play was up 11% to MOP58 billion. Slot revenue was up 6% to MOP3.5 billion.
Mass tables and slots combined to comprise 32.6% of the total market. It was the fourth consecutive quarter, and only the fourth time since 2009, that VIP revenue accounted for less than 70% of the whole, indicative of a steady shift toward Macau as a mass destination. It’s a trend analysts expect will gain momentum as China’s middle class continues to expand and improved transport and immigration processing make access from the mainland faster and easier. The larger and more diverse resort offerings taking shape on Cotai are expected to contribute significantly to this transformation.
“We remain excited about the continuous mix shift towards mass market and slots,” said investment brokers Union Gaming Research Macau. “We think the 2013 full-year revenue mix should move towards 65% VIP and 35% mass market/slots by year end (for the first time since 2006). Under this scenario, we estimate that EBITDA margins should improve by at least 200 bps.”
