The growth rate of gambling revenues in Macau should be around 0 percent in 2014 -1 percent in 2015, Fitch Ratings said Wednesday.
Fitch’s forecast reflects continued weakness associated with so-called VIP gaming revenues and that “seems to be contaminating revenues from the mass gambling segment.”
In a statement, Fitch said it expected a contraction in revenues would continue in the first half of 2015 “until concession-holders Galaxy Entertainment and Melco Crown inaugurate the extension of Galaxy Macau and Studio City, respectively and the negative trends of VIP gaming level out.
“Until then, our prediction is that revenue growth will remain virtually zero, and in the second half of 2015 there should be a reversal of this trend with growth of 5 percent to 8 percent in the mass market and 2 percent to 4 percent in the VIP segment,” the statement said. (macauhub/MO)