Fitch lowers growth forecast for gaming sector in Macau

15 September 2014

The forecast for growth in gross casino gaming revenues in Macau casino has been revised downwards from 10 percent to 4 percent by credit rating agency Fitch Ratings, according to a statement issued Thursday in New York.

The agency said its growth forecast of 10 percent, announced in mid-July, was already a downgrade from a previous forecast of 12 percent but added that, “the fundamentals of gaming remain stable in the long term.”

Fitch Ratings projects an increase in revenues from the mass gambling and slot machines segments – of 15 percent and 5 percent, respectively – but a drop of 15 percent in the VIP segments, “which equates to losses of 3.5 percent per month until the end of the year, which is consistent with the last two months.”

The forecast now announced by Fitch Ratings takes into account a forthcoming ban on smoking in casinos, which has required installation of smoking rooms, as well as the anti-corruption campaign currently underway in mainland China and increased difficulties in obtaining credit by gaming and gambling companies. (macauhub/MO)