Macau february performance lags analyst expectations

Figures for February 2018 released Thursday by the Macau regulator showcase a performance lower than that expected by analysts, with revenues up y-o-y just 5.7 percent at 24.3 billion patacas ($3.02 billion).

Whilst this was still the highest growth achieved in the past year, analysts pointed out that expectations were higher given a big-spending Chinese new year holiday period. On the bright side, they noted that February was the 19th month of consecutive gains in the world’s largest gambling hub.

Analysts had predicted gains of between 7 and 12 percent.

High rollers may have stayed away from the gambling hub over the holiday period in order to avoid the holiday crowds. The number of visitors during the national holiday week rose 6.5 percent, preliminary government data showed.

Macau revenues still trail highs hit in 2014 and are around monthly revenues seen in 2012, Thomson Reuters Datastream showed.

Morgan Stanley analysts say that Macau’s gross gaming revenue could hit $60 billion by 2022 as the number of visitors from China’s lower tier cities increase, coupled with higher visitor spending. Infrastructure developments including high-speed train extensions and a bridge connecting Hong Kong, Macau and neighbouring city Zhuhai, set to start operating in the next two years, are likely to boost revenues.

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