MACAU: GOOD START TO CNY

The Chinese New Year celebration is providing the kick start we thought.  Here are the trends and comps.

• According to Lusa, Macau daily GGR reached HK$1.34 billion for the 1^st six days of Chinese New Year 2014.  Compared with the daily HK$999MM for the 1^st seven days last Chinese New year, that translates into 35% growth in daily GGR on a CNY basis.  On a calendar basis, daily revenue may have come close to doubling.
• CNY GGR usually picks up 7-14 days after the new year i.e. Jan 31, 2014.  Hence, GGR may be even higher for this coming week.  
• The chart below shows very easy comps for the 1^st half of February due to calendar differences.
• The 2^nd half of February laps last year’s CNY pickup and will be considerably more difficult at HK$1,030 ADTR.  But if we use December as a ‘normal’ run rate without any holiday distortions, we shouldn’t see a precipitous decline.
• We continue to believe February could generate 20% YoY growth