January may bring new monthly record: Sterne Agee
The month has only just started but U.S.-based brokerage firm Sterne Agee says initial data is already hinting that January may set a new monthly casino gross gaming record.
The previous record was set just last month, when casino revenue in Macau hit MOP28.2 billion (US$3.5 billion).
Analyst David Bain wrote in a note issued yesterday that according to Sterne Agee’s checks, Macau table-only gross gaming revenue stood at MOP5.5 billion for the first six days of the month.
“The slot inclusive gross gaming revenue run-rate puts January at MOP29.5 billion, or up 18 percent year-on-year versus our 15-percent year-on-year estimate. Both the current run-rate and our estimate position January’s Macau gross gaming revenue toward record territory.”
Mr Bain noted that the newly opened Gongbei station of the Guangzhou-Zhuhai rail line is having a “positive impact” on Macau’s gaming industry.
As for the partial smoking ban in casinos, which was enacted on January 1, “checks report very little business interruption.”
Meanwhile, Bank of America Merrill Lynch yesterday raised its 2013 forecast for Macau’s casino gross gaming revenue growth to 10.4 percent from 8.2 percent.
Analysts led by Billy Ng wrote in a note that they forecast VIP gaming revenue to rise by 6.7 percent year-on-year, while the mass-market is poised to grow 20 percent.
Hoping Alcoa will give insight into the China market after hours when it has its conference call on earnings. Media starting to talk about a China fizzle after YUM reported slower than expected sales.. This should make things more clear.
Deutsche Bank Analyst Karen Tang wrote that she forecasts earnings of casino operators with a Cotai presence to grow between 26 percent and 30 percent this year because of the opening of the Gongbei station, the last stop of the high-speed railway link connecting Zhuhai to Guangzhou.
“Visitor growth will likely resume, making the divergence between Cotai and Peninsula more apparent,” she wrote.