Gaming exceeds records at $99.2b in 1Q14

This is despite mediocre growth in March.

According to Barclays, Macau gross gaming revenues (GGR) for March 2014 were just +13% y/y.
Growth was driven by the higher-margin mass table segment, mass table revenues were strong at +40% y/y in March.

Also, while VIP revenues were just +3% y/y, VIP volume growth was actually still strong at +12% y/y; The average hold rate in March 2014 was slightly lower at 3.11% compared to a year ago at 3.38%. Slot GGR growth was +8.6% y/y.

Here’s more from Barclays:

1Q14 overall GGR was HK$99.2 bn, which is a new record high in Macau. 1Q14 saw 20% y/y growth and +2% q/q growth in overall GGR; the mass segment was again the main driver.

Mass table revenue growth was very strong at +39% y/y and +5% q/q at HK$32.4 bn. VIP volume growth was +16% y/y, but down 3% q/q; VIP revenues were +12.5% y/y and +0.4% q/q to HK$63.0 bn. Slot revenues were +10% y/y and +5% q/q at HK$3.8 bn.

With mass table revenues seeing much stronger growth than the VIP segment again, we look for strong revenue growth as well as EBITDA margin improvement for the industry as a whole in 1Q14.

We expect Sands China and Galaxy to see the strongest 1Q14 growth in terms of revenues and EBITDA; and SJM to see the weakest performance.