According to data released by the Macao Gaming Inspection and Coordination Bureau, gaming revenue in the month of April came in at 17.3 billion patacas, about 9.5 percent lower than April 2016’s number.
The 9.5 percent decline came up short of analysts’ consensus expectations of a 13.5 percent drop.
Shares of Melco Crown Entertainment Ltd (ADR) MPEL 0.85%, Las Vegas Sands Corp. LVS 1.22%, MGM Resorts International MGM 0.14% and Wynn Resorts, Limited WYNN 3.41% all opened Monday’s session trading up by more than 2.3 percent after lagging the S&P 500 in April.
Searching For A Bottom
April marked the 23rd consecutive month of year-over-year (Y/Y) negative gaming revenue growth in Macau. Y/Y comps look to get a bit easier starting in June, and Macau investors are looking to cap the losing streak at around two years within the next couple of months.
February 2015 marked the high point for gaming revenue declines at -48.6 percent. November’s GGR of only 16.4 billion patacas represented the lowest monthly gaming revenue total for Macau during the current downturn, but April’s total was the lowest number since.
The Bad News Barrage
Macau has seen a seemingly constant stream of bad news over the past two years. In 2014, the Chinese government announced a crackdown on corruption in Macau.
Increased government scrutiny coupled with a weakening Chinese economy led to a major falloff in VIP gamblers.
In September 2015, headlines of potential junket embezzlement of up to $258 million dollars had investors worried about even more government regulation down the road.
In addition, fears surrounding the impact of a smoking ban in Macau casinos have also weighed on share prices.
Last month, Wynn reported…
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