Macau gaming revenue soars 16% in April

rding to data posted by the Gaming Inspection and Coordination Bureau, April saw Macau’s gross gaming revenue rose 16.3% year-on-year to MOP20.2bn (US$2.5bn).

Analysts speculate the cause of the regions record nine straight months of positive growth is due to strong VIP numbers, with figures in April resulting at the higher end of analyst estimates.

The results released earlier this week were for the most part in line with analyst predictions, forecasting approximately 13-17% growth in April.

Analysts expect a strong revenue growth for the balance of the year, however the pace of growth may fall back during the final two months.

Bernstein Research wrote in a note that “VIP GGR during the month was much stronger than we had expected. However, longer run we remain sceptical of a long sustained double-digit growth environment for VIP. We see VIP slowing down in 2H and perhaps turning negative in Q4.”

Last week, Wynn Resorts, Las Vegas Sands and MGM Resorts reported better-than-expected earnings, with all three casino giants relying heavily on the market in Macau.

Wynn Macau Ltd casino group reported a significant 26.5% increase in net profits for the first quarter of 2017 to $103.6m. Wynn Resorts shares jumped 2.4% to 125.92, hitting a two-year high after soaring 6.1% in market trading last week.

Furthermore, MGM Resorts rose 0.85% to 30.97, soaring 8.1% last week. Whilst Melco Resorts rose 2.3% to 22.45 per share, hitting a record two-year high after soaring 6.8% last week,