Telsey: December revenue growth no higher than 5 pct
Analysts at Telsey Advisory Group expect the year-on-year increase in the city’s gross gaming revenue for this month will be under 5 per cent.
‘According to our industry sources, based on gaming play for the first 26 days of December, [gross gaming revenue] in Macau for the month is estimated to be tracking at just under [a growth of ] 5 per cent year-on-year, a deceleration from last week’s [growth of] 10 per cent estimate,’ the company’s analysts wrote in a note on Tuesday.
‘This assumes an electronic game estimate for December, which puts monthly gross gaming revenue at HK$18.6 billion (US$2.4 billion),’ stated the firm.
Since August, local gaming revenue has been back on a track to growth, posting four consecutive months of year-on-year increases so far. For November, gaming revenue registered a year-on-year increase of 14.4 per cent, amounting to MOP18.8 billion.
‘December [gross gaming revenue] is up against a comparison of a 21.2 per cent decline, which was more difficult than November’s 32.3 per cent decline comparison,’ the note reads.
Despite the possible lower year-on-year growth in November, the firm notes that: ‘overall indications, both anecdotal and quantitative, continue to suggest that the Macau market has been improving, with particular focus on the sustainability of the recovery in the VIP business, which we had expected to decline in 2017’.