he latest forecast of the firm suggests local gaming revenues may amount to between US$ 2 billion and US$ 2.08 billion for this month, compared to the US$ 2.17 billion for the same month last year. Wells Fargo estimated that the average daily revenues generated by the city’s gaming sector were around some US$ 70 million for the first twelve days of this month.
“The past week was much stronger than the prior week. The Dragon Boat Festival was a week earlier this year, which helped drive demand,” the report reads. “Our estimate implies daily revenues of roughly US$ 65 to US$ 68 million for the rest of the month. Mass continues to be flattish with VIP volatile on a week-to-week basis,” it added.
The brokerage’s estimate for June revenues also represents a decline of 11 per cent compared to 2.3 billion in May this year, which, however, is in line with the usual pattern. “June’s fiveyear historical sequential growth trend is down 11 per cent month-on-month on average,” the investing firm remarked. In addition, Wells Fargo noted in the updates that it remains on the side-lines regarding Las Vegas Sands Corp, Melco Crown Entertainment and Wynn Resorts, due to the weak Chinese economy plus “a recovery that is likely to be flatter than prior rebounds, contributing to more muted revenue growth in Macau”.