January may hit another record.
The following details Macau table revenues for the first 9 days of January. Note that the counts are performed 1 day in arrears so the total includes New Year’s Eve and New Year’s Day. January is off to a stunning start both in terms of volumes and hold percentage. We certainly expect growth to moderate later in the month as business typically slows down ahead of Chinese New Year which starts on February 3rd this year. If we assume the current torrid pace continues, then gaming revenues would total HK$21.5 billion, up 58% and a new monthly record. However, if we use the November pace for the rest of the month, we calculate total gaming revenues will be HK$18.5 billion, up 36% YoY. Still a record and impressive growth considering last January generated a 63% comp.
Market shares thus far in January continued recent trends. Wynn knocked the cover off the ball in the first part of the month (again) while LVS was a laggard, dropping all the way to 14%. Hold likely played a role in the LVS drop but we remain concerned with their weak Junket volume share. The fact is that LVS is just not competitive with their junket commissions and credit policy.