[ET Net News Agency, 2 December 2019] Goldman Sachs said the decline (8.5%) of Macau's
gross gaming revenue (GGR) to MOP22.9bn in November was broadly in line with the lowered
market expectation.
The research house's discussions with junkets and industry participants suggest VIP GGR
has been weak in recent weeks ahead of President Xi's visit in December. Mass-market might
also have been affected by IVS (Individual Visit Scheme) visa restrictions.
Goldman expects this situation to continue into December, dragging Macau's headline GGR
to fall low to mid-teen %, taking into account: (1) the tougher base for GGR comparison
since the HK-Zhuhai-Macau bridge was launched in late October 2018, and (2) the ongoing
potential impact from official government visits.
But it believes the impact is temporary and will likely see pent-up demand in January.
Goldman sees potential upside to its 3% FY2020 GGR forecast, given: (1) potential macro,
fiscal policy easing to be implemented in the coming months, and (2) upcoming
infrastructure improvements coupled with stabilization in the CNY. (KL)