Parisian and Wynn Place Ramp up Macau GGR
According to analysts Macau gross gaming revenue for the month of September is headed for a year-on-year increase.
“Due to a ramp up of new projects and better than expected VIP, September GGR should still be better than previous years compared to a 5-year historic average m/m decrease in September of -6 percent,” said brokerage Bernstein.
Analysts Wells Fargo stated: “Our checks suggest September mass market revenues are pacing down mid-high single digits, in line with regular seasonality. August revenues were better than expected, picking up in the last 5 days of the month, and some channel checks suggest September started strongly. Based on our checks, we think the recent pop in revenues has all been driven by the VIP segment, and not an increase in mass and premium mass traffic and play. The new VIP rooms have seen additional credit extended to junkets, incenting play. VIP business is inherently volatile week-to-week and month-to-month, especially on today’s much smaller customer base.”
Buckingham Research analysts noted strong VIP demand at Wynn Palace, and improving mass performance at the Parisian.
“We believe that the overall market is benefiting from recent new openings in the market, with especially strong VIP demand at Wynn Palace and improving mass market performance at the Parisian.”
Its analysts are forecasting a flat GGR increase for the month, at 1 percent year-on-year.
They stated: “We believe there could be upside to these expectations as the Parisian and Wynn Palace continue to ramp up, offsetting what is traditionally a slowdown in volume in late September. Importantly, we believe the sector continues to grow into what some market prognosticators believe is an over extended market, with stretched valuations.”
