he Macau Gaming Inspection and Coordination Bureau said this week that the region's casinos collected us$ 2.13 billion in gaming revenue during the month, the second-highest month ever following October's us$ 2.3 billion take. October's results were driven by the China National Day holiday.
Accumulated year on year growth rates since January have consistently been over 50 %, with a maximum of 67.5 % posted in June and a minimum of 56.9 % in November. Last month alone, gross revenues totalled us$ 2.169 billion, with growth of 42.1 % year on year, one of the lowest rates of the year.
At the end of September, there were 33 casinos in Macau, 20 of which were owned by Sociedade de Jogos de Macau, three by Venetian Macau, five by Galaxy Casino, three by Melco/PBL Jogos (Macau) and one each by Wynn Resorts and MGM Grand Paradise.
Analysts thought the numbers benefited Las Vegas Sands, which operates the Venetian Macau and Sands Macau; and Wynn Resorts, which owns Wynn Macau and Encore. MGM Resorts International owns 50 % of the MGM Grand Macau.
"We believe these results are above expectations and confirm our belief that Macau gaming revenues will continue to be strong throughout 2010 from a year-over-year growth perspective, despite a modest cooling of the Chinese economy," Jefferies & Co. gaming analyst David Katz told investors. Shares of Las Vegas Sands, Wynn and MGM Resorts rose.
Las Vegas Sands shares, traded on the New York Stock Exchange, rose 2.52 % to close at us$ 51.34, up us$ 1.26. MGM Resorts shares, also traded on the New York market, increased 1.31 % to close at us$ 12.38, up 16 cents. Wynn, traded on the Nasdaq National Market, closed at us$ 104.79, up us$ 3.69 or 3.65 %. "Today's results were relatively in line with investors' expectations," Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski said.
The official release indicated results by market share for the companies that operate casinos in Macau. Casinos owned by SJM, the company controlled by Hong Kong billionaire Stanley Ho, held 32 % of the revenue, while Wynn Resorts had 17 %. Las Vegas Sands held almost 15 % and MGM Resorts had 11 %.
Katz said the gross revenue results provided "a directional, qualitative data point." Las Vegas Sands' market share declined from about 18 % in October, primarily driven by lower-than-expected table hold, said JP Morgan gaming analyst Joseph Greff.
Wynn grew its market share from almost 14 % in October. Greff said the increase was due to a combination of high table hold and strong volume. "We believe the strength mitigates market concern on the potential negative impact of VIP commission competition," Greff told investors.
MGM Resort's market share and revenues from Macau have increased in recent quarters. The company is planning an initial public offering on the Hong Kong Stock Exchange, following similar moves by Las Vegas Sands and Wynn.
Hong Kong businesswoman Pansy Ho, the company's joint venture partner in Macau, told Reuters New Service during a business event in Hong Kong that she expects the IPO to take place sometime after January 1. MGM Resorts filed the paperwork for the IPO with the Hong Kong Exchange in September.