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Slowing revenue growth could put focus on costs


  • Gaming employee wage growth in Macau has accelerated consistently since 2009 and Macau CPI even faster.   The government estimates CPI in 2013 to grow at 6%, similar to 2012.
  • Indeed, the president of the Macao Hotel Employees Association said that hotel employees are asking for at least a 6% salary increase next year.
  • With GGR growth of +30%, costs were not such a glaring concern.  With 2013 GGR growth expected to slow into single digits (our estimate is +9%), margin expansion may be limited.
  • We are particularly worried about Wynn’s margins since its GGR may only be flat in 2013. 

CHART DU JOUR: MACAU COSTS - mg