Macau September Gaming Revenue Climbs, But Falls Short of Projections Amid Typhoon Disruptions
Macau’s gross gaming revenue (GGR) for September increased by 6% year-on-year, reaching MOP29.98 billion (US$3.7 billion). Despite this rise, the Macau September gaming revenue figure missed analyst expectations, which had predicted growth between 7% and 12%. The shortfall is primarily attributed to severe weather conditions, specifically the impact of two powerful typhoons.
Typhoons Cause Unprecedented Casino Closures
The month of September saw Macau contend with two significant typhoons: Barijat and Mangkhut. Typhoon Mangkhut, in particular, led to an unprecedented shutdown of all 42 of Macau’s casinos. For the first time in the region’s history, gaming establishments were ordered to cease operations for 33 hours. This closure, which occurred mid-month, had a substantial economic impact, with estimated lost revenue totaling MOP1.1 billion (US$136 million).
The typhoons not only forced closures but also disrupted travel and tourist arrivals, further suppressing gaming activity. This marked a rare month-on-month decline in GGR, the first since March, highlighting the vulnerability of the gaming market to natural disasters.
Analyst Reactions and Revised Forecasts
Gaming analysts quickly adjusted their outlooks following the release of the September figures. Grant Govertsen of Union Gaming acknowledged the respectable growth despite the typhoon impact. He anticipated a strong rebound in October, driven by the Golden Week holiday and pent-up demand from visitors. Union Gaming maintained its overall 14% GGR growth forecast for the full year 2018.
JP Morgan also revised its third-quarter growth estimate downwards, moving from 10% to 8%. However, the firm kept its fourth-quarter forecast at 10% and its full-year 2018 projection at 13%. These adjustments reflect the temporary nature of the typhoon’s influence, with market watchers expecting a swift recovery.
Year-to-Date Performance and Future Outlook
Despite the September dip relative to forecasts, Macau’s gaming sector demonstrated robust performance year-to-date. From January to September, total GGR stood at MOP224.23 billion (US$27.7 billion), representing a healthy 15.9% increase compared to the same period last year. This strong cumulative growth underscores the underlying strength of the market.
The August 2018 GGR had showcased robust growth, rising 17.1% year-on-year to MOP26.57 billion (US$3.3 billion). As the region recovers, the focus now shifts to the upcoming Golden Week and the continued recovery of casino facilities. Some properties were still undergoing repairs from typhoon damage at the time of the report. Looking ahead, the impending renewals of gaming concessions for Macau’s six operators remain a key topic for the industry.
Share This Article
Found this story interesting? Share it with your network!
