Casinos React to Muted Growth in Macau (MPEL, WYNN, MGM, LVS)
August 1, 2012 by Jon C. Ogg
China’s Macau gambling and free trade zone managed to show growth in July. While the pace was up by only 1.5% in July on a year-over-year basis, the results were better than expected so the fact that this was the slowest growth since 2009 did not seem to matter. A troubled Chinese economy, a recent tropical storm, subdued demand from Chinese gamblers,and other matters are not seeming to matter either.
Revenue was up by 1% in July to 24.58 billion patacas, or almost $3.1 billion. The good news is that growth was still seen, and there are hopes that September’s quarter and longer-term growth will remain. We are seeing a giveback of some gains in some of the key Macau casino names.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is up $0.04 at $10.12, but shares had been as high as $10.37 earlier this morning.
Wynn Resorts Ltd. (NASDAQ: WYNN) shares are up 0.6% at $94.35, but shares were up at $95.49 earlier today.
MGM Resorts International (NYSE: MGM) is now down 1% at $9.42, after having been as high as $9.62 in earlier trading.
Las Vegas Sands Corp. (NYSE: LVS) is up 1.1% at $36.82, but shares had been as high as $37.37 earlier this morning. It is lagging because of a breach investigation from the privacy agency in Macau.
JON C. OGG
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.