(Bloomberg) -- Macau casinos suffered further pain as gaming revenue dropped more than 90% for the fifth straight month, with executives awaiting a recovery after China's gradual relaxation of travel and visa curbs.
- Gross gaming revenue was 1.33 billion patacas ($167 million) in August, down 95% from a year earlier, according to data from the Gaming Inspection & Coordination Bureau. That was in line with the median analyst estimate for a 93% decline.
Key Insights
- Macau needs to see the return of gamblers from the mainland in order to break an 11-month slump in gaming revenue. While casinos have reopened after a shutdown in February, their main customers in China have been kept out of Macau because of travel restrictions and visa bans.
- Those restrictions are now being slowly eased. Tourist visas to Macau are being resumed in phases by China, expanding to the entire mainland by Sept. 23. A two-week quarantine imposed on Macau travelers upon their return to the mainland has been lifted throughout the country from Aug. 12.
- Analysts are expecting to see signs of recovery in September, followed by a more solid pickup in gaming revenue later in the year. The rebound in VIP business will come faster than mass visitors due to pent-up demand and easier access to travel.
- Despite the gradual travel relaxation, Macau still may face challenges as China is tightening regulatory controls on outbound capital flow. Also, liquidity continues to be tight in the enclave, with junkets seeing capital withdrawals.
Market Performance
- The Bloomberg Intelligence index of Macau casino operators rose 16% in August amid the easing of restrictions. The benchmark Hang Seng Index advanced 2.4% in the same period.
Get More
- Click here for analysts' survey on Macau gaming
- Aug. 21, Macau Casino Stocks Seek 6-Month High as Visitor Data Stir Hope
- Aug. 11, China Resumes Tourist Visas to Macau, Lifting Casino Stocks
©2020 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
