MACAU SLOWDOWN? HOW ABOUT A PICKUP?

Macau blew the doors out in the last week of July. 

Average daily revenue increased 19% from the prior week and was 9% above the average for the first half of the month.  In total, gross gaming revenue grew 48% YoY to HK$23.5 billion, above our estimate of HK$22.5-23.0 billion.  At this point, we don’t know how much of a factor hold played but we surmise that it was high given the huge surge in revenues the past week.

In terms of market share, MPEL and Wynn were again the standouts with market share of both equal to their pre-Galaxy Macau opening levels.  LVS and MGM continued to lag in July which we think were both related to volumes and hold.  Galaxy Macau appears to have reached its stride, jumping to 19.1% from 17.7% post the opening of its flagship property.  Similar to Q2, we think MPEL should have the most upside relative to current EBITDA expectations for Q3.

MACAU SLOWDOWN? HOW ABOUT A PICKUP? - macau july end