Macau Gambling Revenue Jumps 40 Percent
Shares in some of the major casino companies rose following news that Macau’s revenue had climbed 40 percent compared to this time last year.
Revenue for SJM Holdings Ltd., Sands China Ltd. and four other casino giants rose, according to Bloomberg News.
Other casino industry beneficiaries with a presence in Macau included the likes of Wynn Resorts Ltd and Las Vegas Sands Corp.
Wynn witnessed a 3.9 percent to $90.51 at 4 p.m. in Nasdaq trading Monday. Las Vegas Sands jumped 3.6 percent to $36.44.
One of the biggest jumps came from Melco Crown Entertainment Ltd, which rose 5.9 percent to $5.39. MGM gained 1 percent to $11.36 on the New York Stock Exchange.
Still, the rate of growth in Macau had slowed from the 67 percent witnessed during the first half of this year.
Macau growth is “still at attractive levels, even as the rate decelerates,” Janet Brashear, an analyst at Sanford C. Bernstein & Co. in New York told Bloomberg. “The real news is the share battle under way. Reports suggest that MGM and Melco have been particularly aggressive in attempting to shift junket share to their casinos.”
According to Dow Jones, September's revenue was the fourth highest so far this year. The record was in May, when revenue hit MOP17.1 billion.
In Hong Kong trading prior to the Macau announcement, Sands China climbed 6 percent to close at HK$14.84 while billionaire Stanley Ho’s SJM rose 6.9 percent to HK$9.47.
Aaron Goldstein, Gambling911.com
