As a continuation of my last post on visitor and revenue figures, this post will present further graphical representations of Macau’s gaming market on the basis of DICJ’s revenue figures (as above and below) and individual data showing the current distribution of gaming revenue based on VIP and mass market figures.
In the first graph of this post you can see the overall growth (and latest decline) in overall gaming revenue in Macau. February 2014 was the top spot with a total of 38007 million MOP overall gaming revenue. In the second graph you can see the development of revenue on a month to consecutive month basis in percentage. As exepcted there is an up and down due to seasonal changes, lengths of individual months, etc. The real picture, as reported in my last post and in the news, becomes however only apparent when one has a look at the development on a month to previous year month basis:
Revenue growth had been on a more or less constant decline since 2010, resulting in the current negative growth figures.
As raised towards the end of my last post and as mentioned in the newspaper, overall visitor figures are up, with revenues down, suggesting that mass market gamers increased yet VIP gamers withdraw from Macau. What does that mean for the current casino set up in terms of their revenue mix of VIP vs. mass market gaming. Having had a look at individual casinos annual reports I was able to find the following: SJM, Wynn, MGM and Galaxy are sharing information on their VIP and mass market revenue figures.
And as expected the VIP market segment reveals itself as the dominating source of revenue for these casinos with average percentages of 70% to 80% (based upon the sum of VIP revenue and Mass Market revenue; slots and other revenues not taken into account).
Given the fact that there are 6 new casinos under construction which are all trying to get their share of gamblers it will become a highly competitive market in Macau and only those casinos that are able to switch their revenue and profit sources quickly enough in line with the market developments, will be able to maintain their overall return on investment rates.
Disclaimer: All figures and percentages are given for information only without any guarantee of accuracy. I invite everyone to read the information sources by oneself to get more details.
Update: Graphical representation of VIP revenue in % of overall revenue (incl. slots, etc.)