Macau Casino Revenues Up For 4th Month in NovemberDecember 5, 2016 10:41 am
Macau’s Gaming Inspection and Coordination Bureau (DICJ) has released its latest results for November, revealing that the gambling resort’s casinos generated revenues of $2.348 billion in November, up by an impressive 14.4% compared to the same month in 2015.
Up until the second half of this year, Macau’s gambling industry had been on a severe 26 month losing streak following the Chinese government’s decision to launch an anti-corruption campaign in 2014. September of 2016, however, saw the protracted decline come to an end and since then y-o-y revenues have been increasing every month.
That said, November’s results also marked the first double-digit growth posted by Macau’s resurgent market this year, with the growth reported in the previous months as follows; August (1.1%), September (7.4%), and October (8.8%).
Helping along the recent improvement in the island’s gambling business was the opening of the brand new Parisian casino on September 16, 2016, and looking ahead, Sophie Lin from S&P global ratings commented:
“The opening and ramping up of new casinos, better infrastructure connecting Macau with mainland China, and stabilizing regulations are the major factors that will fuel a rebound in the gaming industry.”
In 2015, Macau’s casino revenues plummeted by 34% compared to the previous year, but this year business is expected to contract by just 3-6%, with December’s revenues forecast to be in the plus 13% to 15% range. Meanwhile, next year’s revenue growth forecasts fall in the 0 to 10% range, although erring on the side of caution is Cameron McKnight from Wells Fargo Securities, with the Senior Analyst warning:
“In our view, recent stabilization and some market growth has been driven by Chinese monetary stimulus and re-inflation of the Chinese housing bubble, influences we think won’t drive prolonged, above-trend growth.”
Despite November’s positive results, casino stocks took a hit after the radio station Teledifusão de Macau recently announced that Macau may introduce a new rule requiring visitors to disclose any cash holding greater than $15,000.