Macau casino revenue receives gloomy forecast for April amid economic concerns
Gaming industry groups cite seasonal slowdown, currency pressure and regulatory action
Key points:
– Daily revenue for early April averaged MOP583m, down 8% from March
– Industry sources expect full-month revenue to range between MOP16bn ($1.9bn) and MOP17bn ($2.21bn)
– Factors include renminbi depreciation, trade tensions, and tighter enforcement on currency exchange
Macau’s casino sector is expected to see a slower month in April, with gaming groups forecasting a drop in gross revenue compared to March. As reported by Macao Daily, several industry observers anticipate April’s total will fall within MOP16bn to MOP17bn, weighed down by seasonal and economic pressures.
HSBC Global Research estimated that in the first six days of April, gross gaming revenue reached MOP3.5bn, translating to an average daily intake of MOP583m. This represents a decline of 8% from the daily average of MOP634m recorded in March. Despite a 14.7% rise in visitor arrivals during the Qingming holiday, daily revenue was reported to be 3 percent lower than the same period last year.
Market participants pointed to several key factors behind the slowdown. The ongoing depreciation of the renminbi is believed to have weakened consumer spending power, while increased tensions in the US-China trade dispute have added to uncertainty. The Government’s recent efforts to crack down on illegal money exchange activities are also thought to have affected player sentiment, particularly in the premium segments.
Some analysts, including those at Citigroup, remain more optimistic. They maintain a projection of MOP18bn for the month, assuming improved performance during the Labour Day holiday. However, local groups are more cautious, suggesting such targets may be difficult to meet under current conditions.
With traditional VIP activity now playing a smaller role in the market, mid-tier mass play remains the key driver of revenue. While the non-gaming offerings of Macau’s major concessionaires continue to develop, April is expected to remain a subdued month overall.
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