Macau: Casino revenues drop to us$ 1 billion

Business has been impacted by a credit crunch among VIP junket agents and Beijing's year-long curb of mainlanders travelling to the city. But some analysts and investors are becoming bullish on Macau casino shares, encouraged by cost-cutting measures and signs that monthly revenue declines may already have roughed in January and February.

“We believe that with potential positive earnings surprises and possibly some supporting policies, the worst may be over for the Macau gaming sector,” Credit Suisse analyst Gabriel Chan wrote last month in a research report.

Despite losing more than half their value over the last 12 months, locally traded shares in casino operators are on a strong bull run this year. Galaxy Entertainment, Melco International Development and SJM Holdings have risen 47 to 90 % so far this year, outpacing a 14.2 % gain in the Hang Seng Index. By operator data indicate the Stanley Ho's Sociedade de Jogos continues in first place with about 31 % followed by Las Vegas Sands,with just over 26 %.

In third position it remains Wynn Resorts with a share of more than 13.5 % but was the last operator with revenues above us$ 127 million. The second half in the ranking is occupied by Galaxy with about 12 % of quota the Melco/PBL with 9 % and the MGM Macau with just over 8 %.