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Takeaway: This could be a big negative for Macau stocks

Mass revenue growth has outpaced volume growth.  With Mass hold % plateauing, revenue growth is likely to slow.

  • Over the past four years, mass revenue growth has significantly outpaced volume growth as mass hold rates climbed higher and higher
  • While the higher hold is likely sustainable – due to rationalization and productivity – we’re concerned that investors may not be aware of how much hold has played a role in the 3+ year surge in Macau Mass growth
  • Mass volume growth has lagged revenue growth by an average of over 10%.  Going forward, Mass revenue growth is likely to track volume growth which means slowing growth trends.

CHART DU JOUR:  THE END OF THE MASS HOLD TAILWIND? - MAF