Lower than expected takings from the over 30 casinos at Macau through the initial week of 2019 has reportedly prompted brokerage company, Sanford C Bernstein and Company, to forecast January’s upcoming aggregated gross gaming revenues tally may remain relatively static.
According to a report from GGRAsia, Sanford C Bernstein and Company analysts Kelsey Zhu, Eunice Lee and Vitaly Umansky explained that recent channel checks indicated that Macau’s casinos’d listed daily aggregated gross gaming revenues for the first week of this year that were roughly 12% higher year-on-year at about $105.28 million.
Chinese economic fragility:
But, the researchers reportedly cautioned that these figures should be considered with ‘a little doubt as weekly station checks have proven to be less than accurate’ while also warning the continuing weakness of the Chinese economy may lead to smaller volumes of money being wagered at casinos in Macau and see the real numbers end up being ‘explosive. ’
Predicted 2% array:
Therefore, the company team detailed they anticipate Macau’s aggregated gross gaming revenues for January to come in at between $3.31 billion to $3.18 billion, that would represent a year-on-year increase or fall of approximately 2%.
Reportedly read the advice from Zhu, Lee and Umansky…
“As we’ve been highlighting, the macro environment in China is producing headwinds risk for gross gaming revenue growth in Macau in 2019.
Long-running success:
GGRAsia pointed out that July of 2016 was the last time that Macau saw its aggregated gross gaming revenues experience negative growth as that month’s tally of $2.41 billion represented a decline of some 4.5% in comparison to the exact same 31-day interval in 2015. The former Portuguese enclave has since seen 29 consecutive months of expansion that has been topped off by December’s figure swelling by 16.6% year-on-year to reach $3.27 billion.
Forecast corroborated:
Backing up the warning against Sanford C Bernstein and Company, the Instinet equity trading subsidiary of Japanese investments firm Nomura Holdings Incorporated supposedly forecast that it expects Macau’s aggregated gross gaming revenues for January to remain level or improve by a maximum of approximately 5 percent.
Reportedly read the advice out of Instinet…
“We consider gross gaming revenues per day benefited from a marginally higher weekend-to-weekday percentage, which we quote favorably impacted daily gross gaming revenues by roughly $2.11 million, supposing weekend demand at roughly 1.5 times that of a typical weekday. ”
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