In a new report this week, Goldman Sachs analyst Simon Cheung took a close look at the most recent Macau gaming numbers and presented an updated view on the stability of the industry. After 14 consecutive months of year-over-year declines in gross gaming revenue (GGR), Cheung sees signs of “steady GGR” now returning to Macau.

The Numbers

The weekly GGR numbers for August 10-16 came in at 4 billion MOP, which was flat week-over-week. This time of year typically brings a seasonal pickup in revenue in Macau, but the ailing market is taking whatever positive signs it can find at this point.

Last August, the daily GGR run rate for the month was 9 percent higher than the July rate. The recent devaluation of the RMB could be to blame for the lack of a seasonal pickup so far this August. Cheung speculates that the unexpected currency devaluation might have resulted in short-term liquidity tightening among smaller junkets and agents in Macau, but notes that mass market numbers and larger junket operations remain largely unaffected.

Shallower Recovery

Cheung believes…

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