Macau gaming revenue surges in October
Macau gross gaming revenue surged 22 percent in October, figures released Wednesday show, beating consensus estimates and lifting shares of Las Vegas gaming companies.
Monthly gaming revenue rose to $3.3 billion, the largest increase in three years and the 15th consecutive month of gains. That lifted the 10- month total for 2017 to $27.4 billion, an increase of 19 percent compared with last year.
Macau gaming revenue growth was driven by VIP clients, according to Wall Street analysts. VIP gaming revenue grew about 30 percent, with mass market in the low teens, Union Gaming analyst Grant Govertsen said in note on Wednesday.
The 10-month total is just 1.5 percent shy of the $27.8 billion posted for all of 2016. Gaming revenue on the Chinese enclave is set to surpass the $30 billion mark this year and post its best result since 2014.
Wall Street analysts had expected growth of 15 percent for October due to several unfavorable factors, including the gathering of the communist party elite in Beijing, one less weekend day and a typhoon forecast.
“Absent these headwinds, the October growth story likely would have been in the mid to high 20 percent range,” said Govertsen.
The strong results pushed shares of Wynn Resorts Ltd higher by $4.06, or 2.8 percent, to $151.55. Las Vegas Sands added 99 cents, or 1.6 percent to $64.37.
Wynn Resorts and Las Vegas Sands each generate more than 50 percent of their revenue from Macau. MGM, which generates just 20 percent of its revenue from China, fell 53 cents, or 1.7 percent, to $30.82.
JP Morgan forecasts that Macau gaming revenue will rise 16 percent in November and December, the U.S. bank said in a note Wednesday morning. Union Gaming is similarly forecasting growth in the mid to high teens.
The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.
Contact Todd Prince at tprince@reviewjournal.com or 702-383-0386. Follow @toddprincetv on Twitter.
