Macau To See 2% Drop In GGR For 2019 Say Investment Bank
Stockbrokers Morgan Stanley believe that Macau gaming will shrink by some 2% in 2019 compared to that of the previous year. The main point that the investment bank is reasoning its forecast is the impact on the VIP Smoking which up till now was allowed but is now also becoming a smoke free zone.
Morgan Stanley said in their note to investors, “The full smoking ban pressuring VIP and premium mass growth in 2019, and potential decline in earnings before interest, tax, depreciation and amortisation year-on-year growth in the first quarter of 2019.”
The investment company did point out two shares worth investing in, they were MGM China Holdings and Melco Resorts & Entertainment. The reasoning behind this were that both launched new casinos in 2018 and the investment bank say they will both increase their market share in 2019.
In 2018 Macau gaming saw a rise of 14% in GGR compared to 2017 and even Morgan Stanley said that they would review their forecast depending on the first quarter of this year.