Macau’s average daily rate (ADR) fell 14 percent last week from the first two weeks of the month, but total gross gaming revenue for the month of January is still on track to rise in the vicinity of 10 percent from 2016 levels.
ADR is current tracking at MOP$668 million from 1 to 22 January, representing the sixth time in the past seven months that ADR has risen from the previous month should the trend continue across Chinese New Year.
However, with a noticeable slowdown ahead of the CNY holiday, GGR could fall fractionally short of earlier expectations, according to Bernstein’s Vitaly Umansky, Zhen Gong and Yang Xie.
“We expect the GGR to soften over the first few days of this week and gradually increase as we enter Chinese New Year (which begins on 28 January).,” the company said. “We estimate an ADR of MOP$610 to 650 million for the remainder of this month, which would result in a January GGR in the range of MOP$20.2 billion and MOP$20.5 billion – +8 percent to +10 percent year-on-year.
“If the slow down leading into CNY over the next week is more pronounced than expected, the monthly GGR estimate could fall short of our current expectation.”
