Macau Still Hurting in November
Macau gambling revenues appear to be stagnant in the month of November so far following a poor performance in October.
October was the worst month on record for casino revenues in the world's biggest gambling hub of Macau with revenues falling between 20 and 30 percent.
Analysts weighed in on the last two weeks results.
“Up to November 16, Macau noted gross gaming revenue (GGR) of MOP12.75 billion [US$1.6 billion], implying ADR of MOP797 million, [continuing] to track lower than the ADR of MOP850 million in October (post-Golden Week holiday) and MOP852 million for September,” said a note from Credit Suisse AG.
“The ADR last week (November 10-16) further decelerated to MOP750 million. The [Macau] Grand Prix race during November 13-16 may [have] hurt revenue, but an 11 percent week-on-week decline appeared to be weak,” said analysts Kenneth Fong and Isis Wong.
“We estimate these drags could have impacted mass by 6 to 13 percentage points. Combined with continued slowing in high-end demand, we see these factors driving underlying mass growth (-5 percent in October) to be below consensus expectations of single digit growth in the fourth quarter,” said the UBS analysts.
- Aaron Goldstein, Gambling911.com
