Inside the Macau May gambling revenue report

Sands China (LVS) took down 23% of the gaming revenue in Macau in May, according to a Portuguese newspaper.

SJM Holdings (SJMHF) and Galaxy Entertainment (GXYEF) trailed Sands by just a bit.

Wynn Macau (WYNN) and MGM Resorts (MGM) lost a little market share during the month.

A drop to single-digit growth for the overall Macau gambling market rattled the sector yesterday.

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Comments (5)
  • jensan96
    , contributor
    Comments (299) | Send Message
    The growth rate of Macau is $5 billion almost 72% of what is done in Las Vegas annually. The potential of adding an equivalent of one years Las Vegas GGR without adding new hotel rooms and new casinos really shows the Macau entity can sustain itself.
    More visitors means more mass gambling interprets to higher profit even though VIP trails the GGR growth . Growth is not as rapid but my belief higher Ebitda is occurring and hotel occupancy is higher as are thr rates . Means increases in ancillary revenue streams will be at an imcreasing levels such as F & B and retail and as well as conventions .
    4 Jun 2014, 09:05 AM Reply Like
  • Howard Jay Klein
    , contributor
    Comments (874) | Send Message
    All true. But bear in mind, at the heart of the Chinese patron is gaming. Ancillary non-gaming revenues such as dining, hotel,etc are not a mainstream reason for visiting Macau. As someone who has observed the Asian gambler for decades I can tell you that other than special shows of top Hong Kong stars periodically, the food and hotel amenities are never big incentives. You can't apply the Vegas paradigm to Macau: non-gaming revenues have literally saved Vegas over the past decade, but the marketplace is different. The experience sought by average Vegas visitors today involves everything on offer. Not true in Macau. Revenue streams from these support business lines will not become a huge factor in projected EBITDAs of LV Sand, Wynn and MGM. Their eye is on one ball--at least for the foreseeable: gaming revenue from a growing but still underserved market. And conventions likewise will not become an important revenue stream for these operators for many years to come. Base your evaluation of the companies entirely on their ability to maintain and build gaming market share.
    4 Jun 2014, 09:37 AM Reply Like
  • jensan96
    , contributor
    Comments (299) | Send Message
    Take a look at occupancy rates at hotels and the increase of prices. Granted GGR is by far the largest share of Revenue for each Casino. However you are now seeing Ancillary levels, in Hotel , F & B, Convention and Retail total over a 1/2 Billion dollars annually for the Venetian Hotel in Macau. SCC will have revenues from this area around 300 million annually. These are high profit margin areas that will require small amounts of maintenance and overhead. Though revenue is required, the key indicator is profit. As stated each dollar from Ancillary Revenues may have Profit Margins between 50 to 85% per dollar.
    5 Jun 2014, 08:33 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7066) | Send Message
    What about (MPEL)?
    4 Jun 2014, 05:52 PM Reply Like
  • Coltgunsil
    , contributor
    Comments (87) | Send Message
    The fact that LVS ( and Sheldon Adelson) has a higher market share than SJM (and Stanely Ho) is a terrific accomplishment.


    Old guys rule!!!!
    4 Jun 2014, 08:42 PM Reply Like
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