MACAU OFF TO SOLID START

Takeaway: Comps are tough but volumes and traffic look solid

Golden Week 2012 was decent with average daily table revenues (ADTR) for the 7 days up 1% over the first 9 days of October last year.  Golden Week and October as a whole are difficult comps (October 2011 up 42%) and hold was higher than normal last year.  Visitation through Golden Week was up 9% YoY (that is an apples-to-apples comparison) and we have reports of strong floor traffic.  This bodes well for high margin Mass gaming revenues.  We are projecting full month GGR of HK$27.0-28.5 billion which would represent YoY growth of 4-9%. 

MACAU OFF TO SOLID START - macau4

In terms of market share, the first week winners were LVS, MPEL, and GALAXY while WYNN is clearly holding low in the first week.  Again, we don’t put much stock in market shares this early in the month.

MACAU OFF TO SOLID START - macau5