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As we expected, the detail behind what was already a very strong month, was even better.  As you know, Macau gross gaming revenues (GGR) grew 21% YoY in November to HK$29.3 billion.  What you may not know is that VIP hold percentage was approximately 34bps below the year to date average.  We estimate that GGR would have grown 30% YoY with normal hold % in November 2013 and 28% with equal hold % in both periods.  This truly was another outstanding month in Macau.

Two company themes we’ve been focused on clearly played out during November and should continue:  LVS is crushing it across the board and WYNN’s aggressive Mass push is beginning to pay off.  These are our favorite Macau names.

Here are our initial takeaways:

Market

  • Mass revenues increased 39%
  • VIP revenues climbed 15% despite the low hold percentage
  • Estimated VIP hold percentage was only 2.66%, below the normal of 3.00% and last year of 2.88%
  • VIP hold percentage was the lowest since March of 2011
  • Rolling Chip (junket) volume increased 24%, the highest growth rate in almost 2 years
  • Slots were the only disappointment, growing only 2% YoY

LVS

  • While 160bps better than October, market share was just in line with its 3 month average
  • However, VIP hold percentage was almost 60bps below normal – market share would’ve increased sequentially with normal hold
  • GGR outgrew the market (27% vs 21%) but assuming normal hold, LVS’s GGR would’ve grown 40% (vs the market at 30%)

WYNN

  • WYNN’s market share grew 30bps over its 3 month trailing average
  • Hold percentage was 10bps below normal but significantly below last November’s high hold
  • Wynn Macau grew its Mass share 130bps above its trailing average
  • Most importantly, Mass revenue grew over 53% YoY, the highest growth rate since June of 2011, and led the market
  • This was a great month for Wynn Macau

MPEL

  • MPEL was one of the few operators to hold above normal
  • VIP volume and Mass share both fell below recent trend
  • Total revenue growth was in-line with the market despite the relatively high hold
  • We think MPEL could be a share loser over the next year

MGM

  • MGM held well above normal and higher than last November’s low hold
  • High hold contributed to 39% YoY GGR growth, 2nd highest in the market
  • Mass market share was only 6.4%, the 3rd lowest of its history
  • We think MGM has the most to lose by WYNN’s recent Mass push and that indeed played out in November

Galaxy

  • Galaxy led the market in GGR growth for the 2nd straight month
  • Hold was well below normal
  • Mass and Rolling Chip volume share was above recent trend
  • Solid month from Galaxy