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Nomura Predicts 12 Pct Gaming Income Growth For Macau In 2017

The uptick observed lately in Macau's gaming industry is expected to get stronger according to Nomura, a brokerage firm.
Analysts at the Japanese brokerage have predicted that the 2017 Macau casino gross gaming revenue (GGR) will be about 12 percent, up from the previous eight percent marking a 50 % jump.
The company said in its latest report that the VIP GGR in the initial-quarter was probably to grow by five % quarter-on- quarter as opposed to the earlier estimation that it would decline sequentially by 5 percent.
Source Link In a statement, Nomura analysts explained
Macro enhancements and subsided effect of the anti-graft campaign [in mainland China] continue to lift VIP demand. Robust VIP performance has led us to lift our 2017 total-yr VIP and total GGR development estimates to 14 % (from two percent) and twelve % (from eight %), respectively.
Amid the macroeconomic variables mentioned in the report, the most prominent is that home costs in China have noticed a yr-on- year development of ten % in March 2017 as towards the single digit decline knowledgeable in March 2015. House costs in China are usually taken by investment analysts to be a surrogate for VIP gaming efficiency, generally utilized on a trailing 6 month basis.
The assumption is that a powerful property marketplace indicates enhanced liquidity for Chinese higher rollers who generally gamble with credit against properties from junket operators. Nomura has also indicated an optimistic outlook for the mass industry section. In its report, it stated that mass GGR improve would rise by two percent quarter-on- quarter to increase by 12 % year-on-yr.
The Daiwa Securities Group, another brokerage company has produced mention in a new report that the investment local community has largely ignored the development in mass market GGR in Macau. Commenting on the growth of mass marketplace gambling, the firm's analysts said that they expect the segment to develop by ten % yr on year in the initial quarter of 2017 which could be witnessed as a surprising improvement by the market.
According to Daiwa, gaming properties located in the Cotai location are likely reach an inflection level this 12 months as a consequence of the pivotal Pac On ferry terminal probably opening in Might. The ferry will carry mass industry gamblers right to these Cotai resorts.
Brokerage Sanford C. Bernstein Ltd has announced that the new $one-billion hotel tower currently being produced in Melco Crown Entertainment Ltd's City of Dreams named Morpheus will be hosting premium gaming gamblers rather than VIP gamblers, indicating the declining relevance of large stakes gamblers.

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