Macau Gaming Growth Accelerates Despite Weak Chinese Economy
(Bloomberg) -- Macau casino revenue grew for a second straight month in a sign that the world's largest gaming hub is holding its ground even as a prolonged trade war bites into China's economic growth.
- Gross gaming revenue for Macau casino operators was 23.8 billion patacas ($3 billion) in June, up 5.9% from a year earlier, according to data from the Gaming Inspection & Coordination Bureau. That was better than the median analyst estimate of a 1.8% increase, and follows modest growth in May.
Key Insights
- An acceleration of growth shows that Macau casinos are weathering the headwinds of the tit-for-tat trade war and a slowing Chinese economy, which have chased away some of the well-heeled gamblers and ended more than two years of uninterrupted revenue growth.
- June's results may help ease investors' concerns about another trend -- the emergence of rival regional gaming spots in the Asia Pacific region that can lure the VIP segment away. The effect could be temporary, Andrew Lee, an equity analyst at Jefferies wrote in a June 24 note, with Macau retaining favor given its convenience and easy access for the mainland gamblers.
- Expectations remain subdued for the rest of the year as a whole, with analysts foreseeing a 1% median revenue decline. While the mass market segment has been strong in the past, Citi analyst Anil Daswani wrote in a note last month that some families may have deferred their Macau trips in June due to their children's school exams.
Market Performance
- Casino stocks have been rising, with a Bloomberg Intelligence index of Macau operators climbing 7.5% in June, after a 20% correction in May. The best performer in June was Melco Resorts & Entertainment Ltd., gaining 13%.
Get More
- Read analysts' broader take on Macau here
- June 27, China's Casinos Use AI to Spot Who's Most Likely to Lose Big
To contact the reporter on this story: Jinshan Hong in Hong Kong at jhong214@bloomberg.net
To contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, Bhuma Shrivastava, Jeff Sutherland
©2019 Bloomberg L.P.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
