Gaming | Citi cuts Feb revenue to MOP17.5bn, down 54 pct

Referring to its sources, Citi Research has indicated that Macau’s table Gross Gaming Revenue (GGR) for the first 23 days of February reached MOP13.3bn (or MOP14.0bn, including an estimated MOP700m in slot-related revenue).
The total daily GGR run rate over the past eight days equated to MOP558m/day, declining 5 percent from the previous week.
Citi said the numbers are weak as the sample includes the 3-4 days just before the CNY holiday, which are understood to be the weakest days of the year due to the celebratory season. With only five days left, February looks set to significantly miss even the most conservative estimates on the street.
The research house stated, “We cut our February GGR forecast from MOP22.5bn to MOP17.5bn down 54 percent compared to the highest GGR on record in February 2014.”
To alleviate the effects of seasonality, Citi believes it is better to look at combined January/February GGR which is now forecast to decline 38 percent year-on-year. At this run rate, Citi said its -4 percent 2015 GGR forecast looks challenging, but the research house highlighted “the more important data point is next week, which will show if the normal post-­CNY ramp will occur in 2015.”

Genting Singapore Q4 profit drops

Shares of Genting Singapore, regional leisure, hospitality and integrated resorts operator, have dropped to their lowest since 2010 as the company reported a 36 percent decline in its fourth-quarter profit, the Straits Times reported yesterday.
Genting Singapore’s fourth-quarter net profit declined by 36 percent to SGD89.2 million (USD65.77 million), as the operator was affected by poor performance in its VIP business as well as by bad debts. Analysts believe that bad debts might have also been triggered by Chinese high-rollers who were unwilling or unable to pay their gambling arrears due to tougher credit conditions as the Chinese economy slows.