China Merchants Securities (CMS) said Macau gaming industry's GGR of MOP18,340mn (down 21.2% YoY) in Dcember was better than market expectation of 25-26% YoY decline.
The research house estimated GGR in VIP segment dropped 40% YoY in December, while mass GGR improved 3% YoY. VIP segment continued to suffer from weak economy and liquidity, while the mass segment performed better on both YoY and MoM basis.
CMS said mass market's seasonality effect has become more prominent recently as increased hotel room supply drove up the number of mass market players during holiday seasons including October Golden Week and Christmas season.
It noted that fundamentals still weak, and no catalyst is in sight yet.
CMS thinks GGR is likely to fall 27% YoY in January. While decent December GGR is likely to support the sector's near term trend, 1H 2016 comparison is still tough on high base.
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