Macau gaming sector's revenue dropped 9.7% to MOP28,305m

Did bird flu scare hurt revenue growth?

According to Maybank Kim Eng, Macau gross gaming revenue (GGR) continued its upward trajectory, rising 13.2% YoY but falling 9.7% MoM to MOP28,305m. 

Here's more:

On a cumulative YTD basis, GGR is up 14.4% YoY against our full-year estimates of 11.5%. Daily run rates appear to have come off from north of MOP1b in March to MOP944m in April.

The avian flu has had seemingly little impact on visitor arrivals and gross gaming revenue in Macau for April being isolated at the moment.

Though the Beijing government has stepped up its corruption crackdown by appointing Li Gang, as director of China’s liaison office in Macau, which could impact the VIP gaming space via increased oversight.

We recommend the accumulation of Galaxy (27 HK, BUY, TP: HKD39.10) and Melco Int’l Development (200 HK, BUY, TP: HKD16.20), our top picks for the sector.