Macau gaming revenues grow 42 percent in November

Macau gaming revenues grew 42 percent during November, boosting the prospects for Nevada casino companies operating in China.

The Macau Gaming Inspection and Coordination Bureau said Wednesday the region’s casinos collected $2.13 billion in gaming revenue during the month, the second-highest month ever following October’s $2.3 billion take. October’s results were driven by the China National Day holiday.

Analysts thought the numbers benefited Las Vegas Sands Corp., which operates the Venetian Macau and Sands Macau; and Wynn Resorts Ltd., which owns Wynn Macau and Encore. MGM Resorts International owns 50 percent of the MGM Grand Macau.

“We believe these results are above expectations and confirm our belief that Macau gaming revenues will continue to be strong throughout 2010 from a year-over-year growth perspective, despite a modest cooling of the Chinese economy,” Jefferies & Co. gaming analyst David Katz told investors.

Shares of Las Vegas Sands, Wynn and MGM Resorts rose.

Las Vegas Sands shares, traded on the New York Stock Exchange, rose 2.52 percent to close at $51.34, up $1.26. MGM Resorts shares, also traded on the New York market, increased 1.31 percent to close at $12.38, up 16 cents. Wynn, traded on the Nasdaq National Market, closed at $104.79, up $3.69, or 3.65 percent.

“Today’s results were relatively in line with investors’ expectations,” Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski said.

The official release indicated results by market share for the companies that operate casinos in Macau. Casinos owned by SJM, the company controlled by Hong Kong billionaire Stanley Ho, held 32 percent of the revenue, while Wynn Resorts had 17 percent. Las Vegas Sands held almost 15 percent and MGM Resorts had 11 percent.

Katz said the gross revenue results provided “a directional, qualitative data point.”

Las Vegas Sands’ market share declined from about 18 percent in October, primarily driven by lower-than-expected table hold, said JP Morgan gaming analyst Joseph Greff.

Wynn grew its market share from almost 14 percent in October. Greff said the increase was due to a combination of high table hold and strong volume.

“We believe the strength mitigates market concern on the potential negative impact of VIP commission competition,” Greff told investors.

MGM Resort’s market share and revenues from Macau have increased in recent quarters. The company is planning an initial public offering on the Hong Kong Stock Exchange, following similar moves by Las Vegas Sands and Wynn.

Hong Kong businesswoman Pansy Ho, the company’s joint venture partner in Macau, told Reuters New Service during a business event in Hong Kong that she expects the IPO to take place sometime after Jan. 1.

MGM Resorts filed the paperwork for the IPO with the Hong Kong Exchange in September.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

ad-high_impact_4
Business
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like