Casino takings disappoint as arrivals slow down (Macau)

(source: The Hong Kong Standard October 15, 2005)

Casino takings disappoint as arrivals slow down

Macau casino revenues rose a less- than-expected 4.5 percent in the third quarter from the year-ago period and were little changed from three months earlier.

Saturday, October 15, 2005

Macau casino revenues rose a less- than-expected 4.5 percent in the third quarter from the year-ago period and were little changed from three months earlier.
Its 17 casinos generated revenue of 11.4 billion patacas (HK$11.39 billion) in the July to September period, 0.5 percent more than in the second quarter, according to figures on the Macau Gaming Inspection & Coordination Bureau’s Web site. Third-quarter year-on-year growth was calculated from monthly data. The quarterly gain falls well shy of the near-20 percent 2005 full-year increase forecast in June by CLSA. Investors have already pushed The Standard/ Bloomberg Macau Gambling Index down by 20 percent since Sands Macau, the territory’s biggest casino, released disappointing revenue figures in May. The sluggish increase reflects a slowdown in visitor growth, said Kent Yau, senior economist at Core Pacific-Yamaichi International. Revenue from VIP baccarat, the dominant game in Macau, fell 5.9 percent quarter-on-quarter in the September quarter to 6.99 billion patacas. The next most played, mass market baccarat, brought in 2.6 billion patacas, up 17.7 percent.

Some high rollers have apparently left the VIP rooms of Macau’s traditional casinos to play the public tables at the Sands Macau, Macau Gaming Commission member Jorge Oliveira said Friday at the Hotel Investment Conference Asia Pacific.

Low revenue growth also reflects a lack of casino openings last quarter compared with the year before, when the Galaxy Waldo opened its doors, Yau of Core Pacific-Yamaichi said.

In September, Macau’s casinos produced 3.28 billion patacas, the lowest monthly total since February, based on government data. The figure marked a gain of 9.5 percent over the same month last year.

The casinos had 1,296 tables as of September 30, 51 more than at June 30, and 3,082 slot machines, up 310, the gaming bureau reported.

ZACH COLEMAN

Date Posted: 15-Oct-2005