Macau hits jackpot as casino revenue soars 20%
The news sent shares of Macau's casino operators higher, including Melco Crown, the joint-venture operation of James Packer's Crown.
Casino revenue in the Chinese city jumped to 28.2 billion patacas ($A3.3 billion) in December, beating the previous record of 27.7 billion patacas in October, according to Macau's Gaming Inspection and Co-ordination Bureau. "This is definitely better than our expectation and much higher than the street estimates," said Jeremy Tan, a Hong Kong-based analyst at Kim Eng Securities.
"It's a combination of higher holiday footfall, higher win rate and a return to VIP market."
Full-year casino revenue in Macau increased by 14 per cent from 2011 to 304 billion patacas, also a record.
Gambling revenue is climbing as operators, including Sands China, Galaxy and Melco Crown, expand in the only place in China where casinos are legal.
Visitor arrivals rose 0.5 per cent to 25.6 million in the first 11 months of 2012, with 60 per cent coming from mainland China, the city's Statistics and Census Service said.
Macau authorities expected 800,000 border crossings from January 1 to January 3, Union Gaming analyst Grant Govertsen said in a report.
Frequently Asked Questions about this Article…
Macau casino revenue rose 20% in December to a record level, driven by Christmas promotions that drew more holidaymakers, higher holiday footfall, a higher win rate and a return to the VIP market, according to analysts cited in the article.
Casino revenue in Macau reached 28.2 billion patacas in December, which the article notes is about $A3.3 billion, beating the previous record of 27.7 billion patacas in October.
Yes — the December print beat street estimates and was described as better than expectations by a Hong Kong-based analyst; the news sent shares of Macau casino operators higher, including Melco Crown.
Full-year casino revenue in Macau increased 14% from 2011 to 304 billion patacas, setting a new annual record according to the article.
The article names casino operators expanding in Macau — including Melco Crown (the joint venture tied to James Packer's Crown), Sands China and Galaxy — as beneficiaries of climbing gambling revenue.
Visitor arrivals are a key driver: they rose 0.5% to 25.6 million in the first 11 months of 2012, and about 60% of those visitors came from mainland China, underscoring the mainland market's importance to Macau gambling revenue.
Yes — the article highlights that holiday promotions (Christmas) lifted footfall and mentions Macau authorities expected around 800,000 border crossings from January 1 to January 3, showing how holiday periods can significantly boost traffic and revenue.
Everyday investors should track monthly Macau casino revenue trends, VIP market recovery and win rates, visitor arrival numbers (especially from mainland China), and expansion activity by operators such as Melco Crown, Sands China and Galaxy, since these factors drove the recent revenue gains noted in the article.
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