Macau Gaming Revenue Growth Slows Again on Weaker China Economy

Nov 01 2018, 5:37 AMNov 01 2018, 5:59 AMNovember 01 2018, 5:37 AMNovember 01 2018, 5:59 AM

(Bloomberg) -- Macau’s gaming revenue slowed to single-digit growth for a second straight month, providing further evidence that China’s economic slowdown is taking a toll on the enclave’s casino operators.

Key Insights

Market Reaction
The Bloomberg Intelligence index of Macau casino stocks initially pared an earlier gain after the data was released, then rallied with the overall Hong Kong market, rising as much as 3.2 percent.
The casino gauge has slumped in recent months after a two-year rally. It is down more than 40 percent from a May peak, touching a 20-month low on Tuesday. MGM China Holdings Ltd. and Wynn Macau Ltd. have dropped more than 43 percent during the period.

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Even though October represented the 27th straight month of revenue growth in Macau, the casino hub has seen softening growth since the second quarter. While mass market revenue has maintained solid revenue growth, VIP business has been hit by weakening China property price and stock market turmoil.
Click here for analysts’ take on Macau gaming.