Market Overview

MGM-Macau VIP Revenue At 5 Year Low

MGM-Macau VIP Revenue At 5 Year Low

In a report published Friday, Daiwa Capital Markets analyst Jamie Soo maintained an Outperform rating on MGM China Holdings Ltd (OTC: MCHVF) (HKG: 2282). The stance on the overall Macau gaming industry was maintained at Neutral.

MGM China is a leading player in Macau's gaming industry and its strength lies in its defensive cost profile.

In the report Daiwa Capital Markets noted that the Macau gaming industry's gross gaming revenue or GGR for June 2015 was down 36 percent year on year to MOP17.4 billion, with the average daily run rate of MOP 579 million (-12 percent month on month), the lowest since November 2010.

"Our adjusted estimates indicate that mass GGR declined by 28% YoY and VIP GGR was down by 43% YoY. The VIP rolling volume saw a 53% YoY decline. We forecast the industry GGR to decline by 34% YoY in July," analyst Jamie Soo mentioned.

The VIP rolling run rate remained soft and declined by 14 percent month on month to HKD 8.2 billion per day in June, the lowest since November 2009. The decline in VIP rolling on a year on year basis was 53 percent at HKD 246 billion, while reported VIP revenue was lower by 39 percent at HKD 9.3 billion.

"After accounting for table reclassifications, we estimate that VIP revenue fell by 43% YoY," Soo added. The recent changes to Macau's visa policy are unlikely to have a significant near-term impact on GGR, as underlying fundamentals remain weak, the report mentioned.


Related Articles (MCHVF)

View Comments and Join the Discussion!

Posted-In: Daiwa Capital Markets Jamie SooAnalyst Color Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

ZMRBC CapitalMaintains550.0
ZMJP MorganMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at