Sheldon likes it, while WYNN prefers profit share. MGM and MPEL should embrace it.
With SJM reporting, all the data is in. The first chart shows quarterly Macau EBITDA market share by quarter. We started looking at EBITDA share a few quarters ago when many thought rising commissions would eat into profits. That really hasn’t happened. In the second chart, one can see that with the exception of Wynn, every company increased its property level EBITDA sequentially in Q3, and Q3 EBITDA exceeded Q1 EBITDA in each case.
LVS dominates the EBITDA share discussion, which is probably why Sheldon Adelson is a huge proponent of this metric. With low leverage, Steve Wynn likes to focus on profit share. Hold percentage certainly impacts revenues and profitability, but the two newest EBITDA share champions could be MPEL and MGM. Absent the hold impact, both of these companies are probably EBITDA share gainers going forward.