Strong September for Macau Casinos
Gaming Revenues Continue to Grow In Macau: LVS, MGM, MPEL, WYNN
Capping off another strong month for Macau Casinos, the Macau Gaming Inspection and Coordination Bureau reported that gross gaming revenue for the month of September rose 21.4% year over year, versus a 12.3% rise in September 2012. For the year, Macau gaming revenues are up a robust 16.7%, as most month’s revenue figures year to date have exceeded expectations. Both the VIP and mass market segments have been strong. This bodes well for Melco Crown Entertainment (MPEL), Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts (MGM). MPEL remains our favorite of the group, possessing the best growth prospects, cleanest balance sheet, and is currently the only Macau pure play listed on US markets. In the most recent quarter, 70% of WYNN revenues came from Macau operations, 64% for LVS, while MGM generated only 34% of net revenues in Macau. Expect to see gross gaming revenues continue to come in strong for the whole region for the remainder of this year and into next. For more on MPEL check out our full report, The Best Bet in Macau is Melco Crown Entertainment.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.