THE MARCH MACAU DETAIL

 

March Baccarat revenue fell less than 9% versus last year.  Once again the decline was driven by the Rolling Chip (RC) segment where revenues dropped 12%.  The higher margin Mass Market (MM) segment actually increased 1%.  Good luck prevented a bigger decline in RC revenues.  However, even after normalizing hold % between the two periods, total March revenues in Macau would still have only dropped 13%, an improvement from the 17-19% drop in January and February.

 

The Mass Market performance was encouraging.  Despite the much talked about visa restrictions, MM revenue grew versus last year.  RC faces difficult comparisons through August as the segment was flooded with junket credit last year.

 

THE MARCH MACAU DETAIL - macau march mm rev

 

In terms of market share, both LVS and MGM gained a decent amount of market share as can be seen below.  However, both were attributable to good luck on the RC tables.  Volume, on the other hand, remained consistent with the prior months.  Crown and Wynn Macau did gain a little RC volume share from February, mainly at the expense of SJM.  In the MM segment, Wynn Macau and MGM both experienced a slight sequential increase in revenue share, mostly coming from LVS and Galaxy.

 

THE MARCH MACAU DETAIL - macau march baccarat

 

THE MARCH MACAU DETAIL - macau march rc turnover

 

THE MARCH MACAU DETAIL - macau march mm

 

We continue to be positive on the Macau market and the March results support our thesis.  Despite the visa restrictions, MM continues to be resilient.  If they haven't already, visa restrictions may be eased later this year when the new Chief Executive takes over.  The RC segment faces difficult comparisons only through August when we expect revenues to flatten.  With growth stemming from the higher margin MM and potential junket commission caps in place, market EBITDA growth could be positive later in the year.


Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more