Macau saw its gross gaming revenue rise by 23.7% to MOP$22.74 billion in May, a 10th consecutive month of year-on-year growth and the fourth month in a row GGR has come in well above consensus.
Average daily revenue for May was MOP$734 million, representing a 9% increase on April ADR, with GGR for the first five months of the year now 15.8% above 2016 levels. The positive results come despite a number of unfavorable events including the early May visit of Chairman of the National People’s Congress, Zhang Dejiang, and one less Sunday than 12 months earlier. Previous estimates had May GGR pegged for 16.5% year-on-year growth.
Union Gaming’s Grant Govertsen described the results as highly encouraging, stating, “That Macau exceeded consensus again and turned in a GGR story just shy of February (Chinese New Year) suggests the recovery is in full-tilt.”
Analysts are now tipping June GGR growth of well above 20% with brokerage Sanford C Bernstein citing GGR in the range of MOP$19 billion to MOP$20 billion – a year-on-year increase of 20% to 26%.
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