Casino Shares Up on Macau Revenues
ThinkstockRevenue rose to $35 billion at the Chinese special administrative region of Macau in 2012, up 13.5% for the year after posting a record rise of nearly 20% in December. Predictions of a downturn due to tighter money transfers and…
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Revenue rose to $35 billion at the Chinese special administrative region of Macau in 2012, up 13.5% for the year after posting a record rise of nearly 20% in December. Predictions of a downturn due to tighter money transfers and visa restrictions did not materialize in 2012, but they continue to leave a cloud over the outlook for 2013.
Casino and resort stocks are taking the news well today. Las Vegas Sands Corp. (NYSE: LVS) is up about 5.6%, Wynn Resorts Ltd. (NASDAQ: WYNN) is up 5.5%, and Monarch Casino and Resort Inc. (NASDAQ: MCRI) is up 5.1%. Other gainers include MGM Resorts International Inc. (NYSE: MGM), up 4.9%; Isle of Capri Casinos (NASDAQ: ISLE), up 4.3%; and Nevada Gold & Casinos (NYSEMKT: UWN), up more than 9%. Interestingly enough, neither Isle of Capri nor Nevada Gold owns or operates properties in Macau.
Revenue growth at Macau is anticipated to be in the range of 5% to 10% in 2013 because the Chinese government likes the growth there and will be encouraging it with plans to enlarge the net it casts for non-gambling revenues.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.