Macau reports strong first quarter gambling revenue

Data released over night Tuesday shows that Macau, China’s gambling hotspot, is continuing double digits revenue growth. In March the Special Administrative Regions of the People’s Republic of China brought in us$ 4.4 billion in gambling revenue up 13.1% from the same period last year on the high end of analyst estimates.

So far this year Macau has reported us$ 12.6 billion in gambling revenue, up 19.8% from the first quarter of 2013 and better than anticipated. Last year the region reported a record us$ 44.4 billion in gambling revenue.

Las Vegas Sands shares jumped as high as us$ 84.22 Tuesday morning, adding to a 1.5% gains year-to-date. The company’s last report of revenue and profit came in short of Wall Street analysts’ expectations, but the hit to the stock price was minimal in part due to growth in Macau.

In a statement on the results billionaire CEO Adelson wrote that “in Macau, we delivered record financial results, with strong growth and operating momentum reflected in every segment of our business.” Macao brought in us$ 835.9 million of adjusted property EBITDA to the company in the fourth quarter of 2013. While the company’s namesake city brought in us$ 88.2 million.

Wynn shares popped to as much as us$ 231 Tuesday morning. The company beat Street expectations with its last earnings report and overall the stock has outperformed Las Vegas Sands so far this year, up near 10% year-to-date. In the fourth quarter of 2013, the last reported, net revenue from Macau was us$ 1.1 billion, up 24.6% from the same period a year earlier. Net revenue in Las Vegas on the other hand was us$ 400 million.