Macau, an autonomous region in China where gambling is legalized, saw a recovery in May's gaming revenues at its casino operators after years of disappointing results due to Beijing's crackdown on corruption and attempts to stem capital outflows.
Gross gaming revenue (GGR) rose nearly 24% year-on-year while average daily revenue increased 9% month-on-month.
However, Bernstein is skeptical of the exact figures.
"We continue to voice caution about the accuracy of weekly channel check estimates and the strength (and volatility) surrounding VIP. High hold rates in VIP along with continued volume strength creates volatility and lack of ability to more accurately forecast the monthly trend," the firm noted. "
"However, based on our channel checks during the month, we believe that Wynn (WYNN - Get Report) and Galaxy showed m/m improvement in market share, with SJM and Sands (LVS - Get Report) showing some m/m deterioration and MGM (MGM - Get Report) and [Melco Resorts & Entertainment] (MLCO - Get Report) generally unchanged m/m," Bernstein continued.
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