Macau’s casinos posted their third-best month of the year in July as gaming revenue jumped 20% over last year to MOP29.5 billion (US$3.7 billion).
The results were in line with analysts’ forecasts of 18-21% growth year on year against an easy comparison of 1.5% growth in July 2012, a month that also was impacted by a typhoon that slowed visitation. But the effect was to boost total revenue for the first seven months to MOP200.9 billion ($25 billion), an increase of almost 16% over the same period last year.
Visitation through the first half of 2013 is up 4.2%, with visitation from mainland China, the territory’s principal feeder market, soaring in June by 20% year on year. This bodes well for the mass market’s lucrative contribution to gaming revenues, which is growing at about twice the rate of VIP’s, although the latter still accounts for almost 70% of total win.
“We believe Macau fundamentals remain strong across all relevant segments (VIP, premium mass, mass mass) and we have strong conviction that these trends are likely to continue through the balance of the year,” said investment analysts Union Gaming Research Macau.
The firm is forecasting 18% YoY growth in August to MOP30.8 billion, helped in part by a favorable calendar (one additional Saturday) and the possibility of better weather as a typhoon also hit the city last August.
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