• HEDGEYE’S MARKET BRIEF
    Our FREE Investing Newsletter
    Get Exclusive Summer Sale Discounts

    By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. All Hedgeye products and services are subject to Hedgeye’s Terms of Service available at www.hedgeye.com/terms_of_service

As you already know, May was a strong month in Macau with GGR up 13.5% YoY.  What you may not know is that hold was actually 8bps below normal (including Direct VIP) accounting for a 3.0% drag on growth.  MPEL, LVS, and MGM were the standouts.  Here are some market and concessionaire observations:

MARKET

  • YoY growth would’ve been 16.5% assuming trailing 12-month VIP hold of 3.0%
  • VIP volume posted a 3rd straight above trend (trailing 3 month avg) performance
  • Mass grew 33% YoY, its best performance in over a year

LVS

  • Overall looks better than the market share print
  • GGR growth led the market despite well below normal VIP hold
  • VIP volume share was well above trend
  • Mass grew above trend, pushing market share to within 10bps of April’s all-time high

MPEL

  • Very low hold impacted results yet market share of 14% was above recent trend and YoY GGR growth of 30% trailed only LVS
  • Mass revenue increased a whopping (yes I like that word) 63% YoY and pushed Mass market share to an all-time record
  •  VIP volume share was in-line with recent trend

MGM

  • This property continues to impress us
  • VIP hold was above normal and MGM generated its 2nd highest level of growth since Feb 2012 and 3rd highest in the market
  • Mass share grew sequentially and was above trend

WYNN

  • Was one of 2 concessionaires to hold above normal in May
  • Mass growth was below recent trend
  • VIP volume barely grew in May but was the first month of YoY growth since November 2012

GALAXY

  • VIP hold was normal
  • Pretty much an in-line month across the board for Galaxy 

SJM

  • VIP hold was well below normal contributing to a 12% YoY drop in GGR
  • Mass market was only flat YoY and VIP volume actually declined
  • Market share fell to its lowest level ever

MAY IN MACAU - DETAIL LOOKS EVEN BETTER - d1

MAY IN MACAU - DETAIL LOOKS EVEN BETTER - g2

MAY IN MACAU - DETAIL LOOKS EVEN BETTER - g3