Gaming revenue in the world’s largest gambling hub jumped 25.9 percent in June, according to new data from the Macau Gaming and Coordination Bureau. Despite yet another month of double-digit revenue growth in Macau, shares of Macau casino stocksare slumping on Monday after June growth fell short of consensus analyst expectations to increase 30 percent.
Macau’s June was the 11th consecutive month of growth following a 26-month losing streak that was snapped in August 2016. The prolonged downturn came in response to a 2014 government crackdown on corruption that scared away Macau’s high-end VIP gamblers.
Shares of all four U.S.-listed Macau casino operators opened Monday’s session lower after tremendous runs so far in 2017. Melco Resorts & Entertainment (ticker: MLCO) was down 3.1 percent, Wynn Resorts (WYNN) was down 1.7 percent, Las Vegas Sands Corp. (LVS) was down 1 percent and MGM Resorts International (MGM) was down 0.2 percent.
Investors had been hoping for a strong relative performance from Macau in June considering June 2016 represented its lowest monthly gaming revenue since 2010. However, there may be a simple explanation for June’s weaker-than-expected performance.
“We would attribute the delta primarily to People’s Republic of China President Xi Jinping’s visit to Hong Kong,” Union Gaming analyst Grant Govertsen says. “We note that Hong Kong has been in a state of virtual lockdown over the last several days, and this likely had the effect of curtailing high-end visitation to Macau during this period.”
While investors may be disappointed with the pace of growth in June, the long-term Macau story remains on track. The 25.9 percent year-over-year gain is…
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