International edition
September 21, 2020

It climbed 42.9% in the first quarter

Macau casinos post record gross revenue for March

(Macau).- Macau's casinos reported US$ 2.5 billion in gross revenue for March, breaking a record from February 2010. Gross revenue climbed 42.9% in the first quarter compared with the same period last year, according to the Gaming Inspection and Coordination Bureau.

C

asino gross gaming revenue at the end of last month was up 48 % year-on-year, according to data from the Gaming Inspection and Coordination Bureau (DICJ).

Expect to see something similar this month too. Bank of America Merrill Lynch analyst Billy Ng has forecast continued strong performances due to this month’s public holidays and the fact that there are five weekends in the month.

Information compiled by Macau Business indicated that Galaxy Entertainment Group left the bottom of the market share ranking, with a market share of about 12 %, marginally above MGM Macau, with about 11 %.

Stanley Ho Hung Sun’s Sociedade de Jogos de Macau (SJM) continues to lead the ranking, with a March market share of 34 %, followed by Las Vegas Sands, 16 %, and Melco Crown, with a market share of about 14 %. Wynn Macau came very close to that, with a market share of also about 14 %.

Analysis by Morgan Stanley says VIP gaming continues to set trends. In an investor’s note, analysts Praveen K. Choudhary and Calvin Ho said that February’s VIP rolling chip volume grew 72 %year-on-year. Mass market revenue grew a more modest 39 %.

Overall, Macau’s gross gaming revenue was up 48 % year-on-year in February.

For the first two months of this year, gross gaming revenue grew 40 percent year-on-year, driven by 44 % growth in VIP revenue and 31 % in mass market revenue, the report said.

According to Wells Fargo Securities analyst Carlo Santarelli, VIP gaming is the segment most likely to feel any impact from the earthquake, tsunami and nuclear crisis that has plagued Japan. Even so, casinos in Macau should feel only a limited effect from the tragedy, he said.

 

“Given our belief that the majority of the Japan gaming business is VIP play, we would expect any impact to be isolated to the VIP segment of the market,” he said.

According to Santarelli, less than 2 % of the Macau’s visitors come from Japan.

 

“That said we do not believe even a long term disruption of visitations from Japan would have a meaningful impact on gross gaming revenue or operator fundamentals.”

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