Macau gaming records 3.7% y/y dip in GGR for June

Weaker VIP volumes were partly to blame.

Macau's gross gaming revenue (GGR) for June 2014 was at HK$26.4bn, a decline of 3.7 percent y/y, with weaker VIP volumes and a lower hold rate were the primary reasons behind the decline in overall revenues.

According to a research note from Barclays, VIP volumes were down 9.7 percent y/y in June. The hold rate was at 2.95 percent, lower than 3.22 percent in June 2013 and 3.10 percent in May.

As a result, the report said, VIP revenue was down by 17 percent y/y to HK$15.3bn. Barclays noted that the 17 percent VIP revenue decline was in line with its expectations, but the volume decline of 10 percent y/y was a smaller decline than it had expected.

Here's more from Barclays:

We believe potential reasons for the weak VIP volume in June include some smaller junkets finding it not as easy to obtain new funding and more tables in the VIP segment having been shifted by operators into mass segment, some World Cup impact and the macro economic and political environment that is putting scrutiny on corruption having an impact.

Mass table revenue was still strong at up 27% y/y to HK$10.1bn: This, however, was a slightly slower growth rate compared with the 36% y/y growth we see in May.

We believe it is possible that mass revenue growth was partially affected by the World Cup, but it is difficult to assess how large the impact really was.

For 2014 to date: For January to June 2014, overall GGR was up 12.6% y/y; mass table revenue was up 35.6% y/y; VIP volume was up 6.2% y/y; VIP revenue was up 3.2% y/y; and slot revenue was up +7.0% y/y.