Macau’s gross gaming revenue fell 5% to MOP$24.9 billion (US$3.1 billion) in January, the first time since July 2016 that monthly revenue in the SAR has experienced a year-on-year decline.
But although figures released by the Gaming Inspection and Coordination Bureau on Friday confirmed an end to Macau’s run of 29 consecutive months of GGR growth, the results were better than expected on the back of a strong finish to the month, according to analysts.
Discussing the annual slowdown ahead of next week’s Chinese New Year, Union Gaming’s Grant Govertsen said, “We are encouraged by the January results and view the market as being more robust than it gets credit for, especially given the timing of Chinese New Year this year.
“Because of the timing shift (from 16 February last year to 5 February this year), the traditional pre-CNY slowdown fell almost entirely in January this year versus February last year – thus boosting last January’s GGR and impairing this January’s.
“Despite this, and despite the pre-CNY slowdown falling in the last ~10 days of January, the market felt very buoyant and busier than anticipated at month end.”
Govertsen added that while January suffered from the timing of Chinese New Year, February would enjoy the benefits and predicted February GGR growth of around 9% on the back of healthy visitation and high mass market demand.
Brokerage Bernstein is tipping growth of between 4% and 7%, while Bloomberg consensus currently sits at 5%.
