Macau GGR falls 9% in initially week of Jan., but CNY bookings reportedly sturdy: Bernstein

Macau gross gambling revenue in the first 9 days of January is down 9 percent from the final 12 days of December, even though operators are reporting “good” ahead bookings for Chinese New Year, according to Bernstein.

Normal daily profits in the interval was MOP266 million ($33.3 million) in comparison with MOP293 million in the holiday-boosted close of December.

Thirty day period-to-day GGR is MOP2.4 billion, which is 67 p.c below pre-pandemic ranges, but is up 4 p.c from the thirty day period of December as a entire and 3 per cent increased than the very same thirty day period of 2021.

Bernstein said mass current market profits in the course of the period was strong, getting 10 to 15 p.c from December, however VIP was weak as the junkets ongoing to wind down their businesses. VIP volume month-to-date is down 50 %, with December, previously down 40 to 45 %. It said most VIP action was direct.

The time period main up to Chinese New Year is customarily slow in Macau and as a outcome, Bernstein expects January GGR to be down 70 percent from 2019 levels. However, it reported some operators are reporting solid ahead bookings for the holidays, which operate from Jan. 31 to Feb. 3rd.

The outcomes from Chinese New Year will be highly contingent on the skill to maintain quarantine-absolutely free vacation open during the period.

Ferry services amongst Macau and Shenzhen were suspended from Saturday because of to local outbreaks in the area, even though China is also battling Covid clusters in Tianjin and Henan.

New circumstances in Hong Kong have also pushed back ideas for a border reopening with Mainland China, which was found as a first action for a broader reopening with Macau. Hong Kong has traditionally accounted for about 15 per cent of Macau’s GGR.

To guard versus the spread of the Omicron variant, Macau has suspended all global flights for two weeks starting from Sunday and has warned from large-scale banquets for Chinese New Year.

Bernstein said that the border reopening may possibly now be pushed again right until 2Q22, or at least right until just after the Winter Olympics in February.

“Recovery will be pushed by mass and high quality mass (alongside with non-gaming) and in the long run must offset the destructive profitability impression from junket retrenchment.”