Growth of Macau GGR is going down
The growth of GGR of Macau will fall a bit, starting from the fourth quarter, according to analysts Sanford C. Bernstein Ltd.
The brokerage company also noted that the profit from the mass market segment will outperform the revenue from the VIP segment, which has always been considered the basis for the development of the industry.
In a report published on Friday, brokerage company analysts said that this year GGR will increase by 14%, and next year will decrease by 4% along with 8% growth in the mass market segment. The report suggested that the VIP segment will remain at the same level or slightly lower in the next year.
The data of the gambling regulator, the Macao Inspection and Coordination Bureau, showed that in the second quarter of 2018, GGR increased by 17.2%, to 73.71 billion Macao patacas (about $ 9.18 billion), GGR from the VIP segment grew by 14.4% to 41.04 billion patacas, and the gross profit from the mass market rose by 20.8%, to 32.67 billion patacas.
Provided that new casinos will be opened on schedule, and there will not be any economic shocks in mainland of China, analysts at Bernstein brokerage company have suggested that between 2017 and 2022 the total annual growth of GGR will be about 10% The same indicator of the VIP sector will reach 7%, and the mass-market - 12%.
In light of the fact that the GGR of Macau in the second quarter did not live up to the expectations of the industry, investors worried about the slowdown in the growth of the Chinese economy.
Meanwhile, the flow of tourists in Macau in 2018 may exceed 8 million, according to an analysis conducted by Macau International Airport Co Ltd (CAM).
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