Galaxy leads casino operators higher after Macau revenue surge

Galaxy gained as much as 4.8 % to us$ 1.04, the highest intraday level in two years, before trading at us$ 1,03 as of 11:17 a.m. in Hong Kong. Melco International Development, which has a venture with Australian billionaire James Packer’s Crown, climbed as much as 4.2 percent.

Gambling revenue for the six operators of casinos in Macau, the only place in China where they’re legal, surged 57 % to us$ 22 billion in the year through November, according to Macau’s Gaming Inspection and Coordination Bureau. The economy of mainland China, where most of Macau’s visitors come from, will probably grow 10 % in 2010, according to the median forecast of 18 economists surveyed by Bloomberg.

Casino gambling revenue in the former Portuguese colony was us$ 2.1 billion in November, 9 % higher than estimated by CLSA analysts Aaron Fischer and Huei Suen Ng. “While the growth rate is slowing given higher base comparisons going forward, momentum in terms of absolute gaming revenues remains solid,” they said in a note to clients.

Billionaire Stanley Ho’s SJM Holdings, Asian biggest listed casino operator, rose 1.1 %, extending its gain this year to 188 %. Wynn Macau advanced 0.5 %.

CLSA Forecast

Sands China, the Hong Kong-listed unit of billionaire Sheldon Adelson’s Las Vegas-based company, was halted in Hong Kong trading pending the release of a statement which the company said would contain “price-sensitive information.”

CLSA had forecast Macau casino revenue of us$ 1.9 billion for November, based on its estimates for the first 21 months of the month. “Gaming activity appears to have picked up later in the month,” the brokerage’s analysts said and they forecast Macau casino gambling revenue growth of 56 % this year.

Visitor arrivals in Macau, the world’s biggest casino hub, have surged 16 % this year, with about 53 % coming from mainland China, according to data compiled by Bloomberg. Mainland China doesn’t include Hong Kong, Macau and Taiwan.

MGM Resorts International has a casino venture in Macau with Pansy Ho, who is Stanley Ho’s daughter.