Citi: Macau GGR run-rate down 20% month-on-month in first two weeks of June due to World Cup kick-off
by Ben Blaschke
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Macau’s gross gaming revenue is estimated to have reached MOP$9.0 billion in the first 14 days of June, down 20% on the daily run-rate through May and 16% lower than the run-rate in the first week of June, according to Citi.
In a Monday note, analysts George Choi and Timothy Chau said the lower daily run-rate of MOP$586 million (US$72.6 million) was likely due to the commencement of football’s World Cup swallowing some Macau players’ betting budgets.
They added that, based on industry sources, VIP volume fell by between 15% and 18% month-on-month while mass GGR fell by 10% to 13%. VIP hold rate also appears to be slightly lower than the previous week.
However, Citi is hopeful that upcoming concerts by Keung To at Galaxy Arena and Wakin Chau at Londoner Arena may help mitigate the potential GGR decline.
As such, the bank is “conservatively” keeping its GGR forecast for June at MOP$19.0 billion – down 10% year-on-year and implying GGR will average MOP625 million per day for the rest of the month.