[ET Net News Agency, 4 November 2019] Nomura said Macau gaming revenues declined 3.2%
YoY in October, lower than the research house's forecast of roughly flat YoY. Nomura's
consultant checks suggest low VIP hold % at one of Macau's largest junkets was responsible
for the lower-than-expected October GGR number.
Assuming November GGR declines sequentially (MoM) in line with its trailing seven-year
median of down 13-15% versus October, Nomura estimated GGR for the month should settle
around MOP22.5-23bn. The midpoint of the estimated range implies a -9% YoY decline in
November, or 580bp of sequential deceleration given a tough one-year growth comp.
Nomura said the US-listed Macau stocks are up 8% on average over the past month (versus
+3% for the S&P 500 Index), so the 3.2% GGR decline in November could be viewed as a
modest near-term disappointment. (KL)