Macau Casinos Up 16% to $2.52BN in AprilMay 2, 2017 10:09 am
After reversing a 26 month-long downswing in August of 2016, Macau’s casino market has returned a monthly year-on-year revenue growth ever since. At first the numbers were in the low digits, but in now seems like China’s only legal gambling resort is revisiting past glories once more, especially with April’s figures having now been released.
As a result, Macau’s casino market has enjoyed nine straight months of growth, with January’s figure up by 3.1 percent, followed by 18 percent in February, 18 percent in March, and now by an impressive 16 percent to $2.52 billion in April. While solid growth has returned, it is worth bearing in mind, however, that the market’s total revenues are still significantly lower than their once peak levels, with $28 billion having been generated in 2016 compared to $45.2 billion in 2013. That was also the year that Macau enjoyed a record-breaking month with $4.57 billion collected in October.
That said, things are certainly looking up for the gambling resort, with high rollers helping to drive momentum, while an increase in tourists and casual gamblers has helped provide stability for the industry. Commenting on the positive development, a Grant Govertsen analyst stated:
“We have become incrementally more bullish with the sustainability of ongoing VIP trends over recent weeks. In the short term, VIP is going to be the biggest driver.”
Following announcement of April’s results, Wynn Resorts noted a 3 percent increase in its stock price, with shares in MGM Resorts and Las Vegas Sands also rising by over 1 percent each. Wynn Resorts is heavily invested in Macau, and last August opened up its lastest casino resort, the $4.1 billion Wynn Palace Cotai. Explaining some of the extra interest shown in the company by investors, Union Gaming analyst John DeCree commented:
“The way investors are looking at it, if they want exposure to the recovery, Macau’s Wynn is their way of playing that. For Wynn, about 75 to 80 percent of their profits are coming from Macau.”