Macau could post a new monthly gross gambling revenue record for August if spending continues at the same pace. Analysts at Sterne Agee and Wells Fargo think the Chinese gambling enclave could potentially see revenue beat the record of MOP26.85 million set in October 2011. Sterne Agee’s David Bain wrote that, including slot machines, August’s full run-rate could reach MOP27.1billion in August – a rise of 9 percent compared with the previous year. That was based on the first 19 days of the month recording MOP15.97bn in revenue and their current estimate still sits at MOP26.5bn.
Wells Fargo added to this by stating that revenues for the month were likely to be up by 5 to 10 percent and “on track” to set a record for monthly revenue. Even more interesting were Bain’s comments on the following month, September.
“We anticipate September to end close to a positive 9-percent [growth] year-on-year, which could be boosted higher with the Phase 2 opening of Cotai Central. Subsequently, Macau benefits from [the] National Day Golden Week, which kicks off the seasonally strongest quarter of the year,” Bain said.
Junket operator Asia Entertainment & Resources Ltd (AERL) is hoping to reignite rolling chip turnover growth with a new programme for large VIP agents that don’t require credit. Macau Business reports that from September 1 agents will be invited to share the win/loss under a revenue share model based on their proportion contribution of rolling chip turnover. AERL chairman Lam Man Pou added: “This incremental non-credit business will have lower margins than our existing credit business, but we believe the new programme will ultimately be responsible for an increase in our net income.”
