According to Morgan Stanley

VIP gaming growing faster than mass market in Macau

2011-03-10
Reading time 20 seg

Overall, Macau gross gaming revenue was up 48 % year-on-year in February.

For the first two months of 2011, gross gaming revenue grew 40 % year-on-year, driven by 44 % growth in VIP revenue and 31 % in mass revenue, Choudhary and Ho said.

Morgan Stanley analysts expect Melco Crown Entertainment and Sands China to deliver 19 % and 14 % EBITDA growth quarter-on-quarter, respectively, in the first three months of 2011.

“This should drive stock outperformance in the near term for these two names,” Choudhary and Ho said.

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