MACAU: ROLLING LOWER IN OCTOBER

Macau gaming revenues dropped an estimated 7% year over year in October, distorted lower by a high hold percentage last year on rolling chip (RC) play. Using the same hold % as last year, revenue would’ve fallen only 3%. Of course, MGM wasn’t open last year so the market is clearly challenged from a same store sales perspective.

Total RC volume looked to be down about 4% YoY, down from +3% growth in September. Crown’s growth rate continues to deteriorate. AMA flooded the market with credit earlier this year but has pulled back considerably as of late. YoY volume grew 50% in October, down from 140% in September. The other properties have been fairly consistent. Wynn Macau continues to generate around 50% volume growth, due in part to the expansion. LVS, Galaxy, and SJM are decidedly negative in that order.

On the high margin mass market side, revenue actually increased about 2% in October but not quite as strong as the 5% generated in September. Crown had a big step up here but still couldn’t move into positive territory. Wynn continues to drive positive growth that actually accelerated from September. Despite strong growth at The Venetian and the opening of The Four Seasons, LVS’s mass market revenue declined about 4%.

Overall, Wynn and Crown were the only two companies to generate positive growth in total Baccarat revenue. Wynn had a pretty good month, up 8% despite a lower than normal RC hold in October. LVS saw its Macau Baccarat revenues fall about 4% as a much higher hold % (but still normal) was offset by a significant decline in RC play.