Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Expecting a huge Profit increase for AERL in Jan. 2011 because Macau revenue up 49%

|Includes: LINU-OLD, LVS, MGM, MLCO, SJM Holdings Ltd. (SJMHF), WYNN

in first 16 days of Jan. 2011.

Macau seen rising 49% in January

January 17, 2011 4:40 PM
by Ray Poirier

With U.S. financial markets closed for the holiday on Monday, traders pondered the effect Apple’s disclosure that CEO and co-founder Steve Jobs was taking another medical leave would have on the total market on Tuesday.

But for gaming company investors, the news focus was mainly on Macau where analysts estimated that the new gaming capital of the world would show a 49 percent rise in total revenues in the first month of the new year.

For the first 16 days, the analysts reported, the six casino operators reported a win of $1.4 billion. Extrapolating this amount through the entire month, the analysts saw a record $2.8 billion eventually ending in the coffers of the gaming companies.

The previous record was a shade over $2.1 billion, recorded in December.

In a research note, the analysts listed Stanley Ho’s SJM Holdings Ltd. with the top market share of 32.6 percent. This was followed by Sands China Ltd. (71 percent owned by Las Vegas Sands Corp. [LVS]) at 16.5 percent; Wynn Macau Ltd. (a spinoff of Wynn Resorts Ltd. [WYNN]), 15 percent; Galaxy Entertainment Group Ltd., 12.6 percent; Melco Crown Entertainment Ltd. (MPEL), 11.7 percent, and MGM Macau, a partnership involving Pansy Ho and MGM Resorts International (NYSE:MGM), 11.6 percent.

In a piece, published Monday in the Financial Times of London, the author noted the recent shift of gambling activity from west to east.

Using figures compiled by Global Betting & Gaming Consultants, it was noted that five of the world’s top 10 gambling companies are based in Asia.

The top five, listed by market capitalization, were: Las Vegas Sands, US; Genting, Singapore; Sands China, China; Wynn Macau, China, and SJM Holdings, China.

These were followed by Kangwon Land, S. Korea; International Game Technology, U.S.; Wynn Resorts, U.S.; OPAP, Greece, and Crown Limited, Australia.

Among online gaming operators, the software provider Playtech is ranked first. Also listed are the U.K.’s Betfair, Austria’s Bwin and the UK’s PartyGaming.