More analysts in Macau are scaling back their initial estimates on gross gaming revenue for May. Nomura and Citigroup are the latest to state the market could grow by just a single-digit percentage point this month. Nomura analysts Harry Curtis told Macau Business that he thinks the market will be MOP26 billion in May – growth of 7 percent compared with last year. Citigroup followed them into club skeptic with an even more modest projection of MOP25.5 billion of growth – a percentage increase of a mere 5 percent. They follow a projection by Bank of America Merrill Lynch earlier this week where their earlier expectations ducked down to an increase of 5 to 8 percent. It’s when you compare the numbers being quoted to the 21.9 percent increase in April you start to realize this is slightly disappointing.
VIP room operator Asia Entertainment and Resources Ltd (AERL) is pursuing a dual listing on the Hong Kong stock exchange. The company today announced a pre-IPO enquiry to both an investment bank and a Hong Kong based law firm to discuss the viability of a dual listing for a firm that operates three gaming rooms in the enclave. It’s unclear if their main aim is money or if gaining more respectability is a reason for the decision.
Gaming industry firms in Macau are using more and more electricity. Macau’s Statistics and Census Service report the gaming industry’s consumption was up 18.3 percent in the first quarter to 327 million kWh. Gaming accounted for over half the electricity used by businesses and with new venues opening all the time it’s likely to increase further.