Macau strikes it big as revenue beats forecasts
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Macau strikes it big as revenue beats forecasts

Chinese gamers (that's high rollers, not video game players) doubled down on their spending in August. Revenues rose higher than expected, marking the first time in four months that the figures have beaten the Street's expectations. This is great news for investors, and acts as a strong rebuttal to worries voiced by some observers, who suspected gamers were spending less time at the tables than they had in previous months.

In the second half of August, Galaxy Entertainment Group's share price appreciated by 10%!

graph 0409 macau

SOURCE: Yahoo Finance

Macau’s Gaming Inspections and Coordination Bureau revealed on Saturday that receipts in the world’s largest gaming hub grew by 17% (to $3.3 billion) in August from the same month in 2017. This was a clear beat against consensus estimates of a 15% rise.

This is the 25th straight month of growth logged in the region, which is undoubtedly spearheading a wider revival of China’s luxury sector. Still, a number of headwinds have kept investor sentiment from becoming too buoyant: trade wars, economic slowdowns, and scandals in the gaming industry (here’s looking at you, Mr. Wynn) amongst them.

Bloomberg analysts say that Macau’s gross gaming revenue “should grow by about 13% in the third quarter,” underscoring its current trajectory. Most of this positive performance is still coming from the VIP segment of the market, as high rollers continue to outspend their not-quite-as-high-rolling counterparts.


Dominion holds Galaxy Entertainment Group Ltd. in its Global Trends Luxury Fund.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.