Every knows that Macau Gaming has been on the increase.
The surprise is just how big the increase is – 42% year on year
HONG KONG (Dow Jones)–Macau’s November gambling revenue surged 42% from a year earlier to its second-highest monthly total, exceeding analysts’ expectations despite falling short of the record high set just one month prior.
November revenue totaled MOP17.35 billion (US$2.2 billion), up sharply from MOP12.22 billion a year earlier but 8.1% below October’s MOP18.87 billion, according to data from Macau’s Gaming Inspection and Coordination Bureau.
Analysts said the amount came as a surprise, because market participants had expected revenue to fall back to around MOP15 billion-MOP16 billion after October’s record-breaking number, J.P. Morgan analyst Kenneth Fong said in a research note.
Macau’s October gambling revenue surged 50% from a year earlier, setting an all-time monthly high and exceeding analysts’ expectations as patronage climbed during the week-long Chinese National Day holiday at the beginning of the month. An extra weekend in October also boosted gambling revenue that month. There were five weekends in October.
November’s total was 9% above CLSA’s forecast made after the first 21 days of the month. “Gaming activity picked up later in the month after the Grand Prix weekend,” CLSA analyst Huei Suen Ng said in a note to clients. The Grand Prix was held in Macau Nov. 17-20. She added Macau gambling revenue for 2010 was likely to rise 56% over 2009 based on the current run rate versus the house’s forecast for a 50% rise.
The November figure also exceeded Wells Fargo’s original 29% year-on-year growth estimate. November’s slowdown compared with the previous month was in line with the average sequential dips in November 2008 and 2009, Wells Fargo analyst Carlo Santarelli said.
Macau’s gambling revenue in the January-November period rose 57% from a year earlier to MOP169.46 billion.
See the original article here
By Kate O’Keeffe
Of DOW JONES NEWSWIRES
And the point is – it is starting to hurt in las vegas – the true bellweather of a shift in the industry