China – ‘Less bad’ growth trend sees Macau down 39 per cent in AprilBy Phil - 11 May 2015
Macau’s casino industry generated 38.8 per cent less revenue this April compared to last April with GGR coming in at MOP19.16bn ($2.4bn).
The month marked the 11th consecutive decline in Macau but was a slight improvement on the decline felt in March when GGR dropped by 39.4 per cent and February when it fell by 48.6 per cent.
Sterne Agee analyst David Bain said: “Results compare to our growth forecast range of between -38 per cent and -43 per cent year-on-year. Although optically unattractive on its face, April GGR growth finishes on the higher-end of recent consensus ranges and marks the second consecutive month of “less bad” growth.” May 27 marks the opening of the Galaxy Macau expansion, which could modestly boost market GGR beyond our May forecast. Galaxy’s $2.6bn expansion adds 1,600 rooms to Cotai’s current 12,800 base ( up12 per cent). We anticipate May GGR growth will continue the ‘less bad’ growth trend, ending between -33 per cent and -38 per cent year-on-year. We continue to anticipate positive year-on-year Macau GGR growth in 4Q15.”