Analysts and gambling industry experts are anticipating a shrinking gross gaming revenue (GGR) for Macau in April. According to the top four brokerages operating in Macau, the GGR is expected to go down by two to eight percent for April.
Earlier last week Macau GGR was reported to have shrunk 0.4% year-on-year for the month of March. Despite a shrunk GGR in March the figures came “unexpected” to some analysts who had predicted an up to 6% loss in gross gaming revenue.
Despite estimates suggesting GGR dip for April, on a positive note, the annual GGR is still expected to grow compared to the previous year. However, a lot depends upon the economy in China, and if everything goes well on the mainland, Macau will post positive figures at the year-end.
According to the Macau Gaming Inspection and Coordination Bureau the overall decline in the gross gaming revenue so far this year is about o.5 % or 9.46 billion.
Grant Govertsen of Union Gaming said “As comps [comparisons] begin to ease this spring we are looking for growth to return as of May and generally maintain in the mid-single digits. In our view, considering the macro backdrop, a sequential increase should be viewed positively and a sign of resilience in the market.”
Govertsen estimates that the GGR in April will be 2.8% less for the same period the previous year.
According to the Japanese brokerage firm Nomura, the Macau GGR this month will be down in between 3-8 percent year-on-year.
While JP Morgan Securities (Asia Pacific) Ltd. estimates a GGR loss of 5-7 percent, Sanford C. Bernstein analysts predict a 2-4% dip.