Macau’s gross gaming revenue is on track to record an increase of between 26% and 27% in January after a stronger than expected start to the month, according to analysts at brokerage Sanford C Bernstein.
“Partly helped by high hold,” Bernstein said that their weekly channel check indicates gross gaming revenue of around MOP$17 billion from 1 to 21 January 2018 with an average daily rate (ADR) of MOP$857 million, up 11% on December and 21% on January 2017.
“The VIP hold rate so far during the month has been above normal level which has likely added 5%+ to ADR this month,” it added. “During this period, VIP average daily volume was likely up by around 10% month-on-month and mass is likely marginally improved month-on-month. We believe Galaxy and Wynn have gained share.”
The strong start to the month is in stark contrast to last January, which proved to be the weakest month of 2017 with its ADR of MOP$621 million 15% below the 2017 average.
Assuming a more modest ADR of MOP$740 million to MOP$760 million for the remainder of the month, Macau’s January GGR will fall in or around MOP$24.3 billion, representing an estimated year-on-year increase of between 26% and 27%.
