Gaming revenue in the Chinese territory of Macau rose the most since 2014, achieving a 36pc increase year-on-year in January 2018. Despite the Chinese government wanting mass-market, non-gaming income to comprise a larger percentage of casino revenue in Macau, it was the return of the high rollers that fueled the market.
According to the Macau’s Gaming Inspection and Coordination Bureau, gaming revenue in January were MO$26.3bn ($3.3bn), thanks mostly to VIP players arriving to the Portuguese colony before the Chinese New Year.
The 36pc increase represents the biggest jump in terms of gaming revenue since February 2014, and the the highest percentage since 2011. The increment beats by far analysts’ expectations or a 20-28pc year-on-year growth.
“Overall revenue trends in January have been healthy,” Daiwa Capital Markets analysts led by Jamie Soo said in a note on Monday, “We believe this situation paves the way for a solid Lunar New Year period beginning in mid-February.”
The performance has helped Wynn Macau and Sands China to achieve earnings better than forecasts in the fourth quarter 2017. Both companies generate the most of their revenues from the region. The other four listed concessionaires, MGM China, Melco Resorts, Galaxy Entertainment and SJM Holdings, will post earnings in the coming weeks.