MACAU JUNE DETAIL

While an ugly report was expected, on a hold-adjusted basis, June was positive. 

As we noted before, we believed June was affected by low hold.  Adjusting for direct play, market hold was 2.8% vs 3.0% in June 2013.  Assuming normal hold (3.0%) in both June periods, June GGR would have grown +1% YoY.  While VIP volume fell almost 10%, the biggest decline since May 2009, June mass revenues continued its strong performance of 27% YoY growth – although it was slower than the growth seen from Jan-May 2014 of +37%

VIP was certainly the story in June.  MPEL had a disastrous June, owning to poor VIP performance and very low hold.  Galaxy was easily the best performer, despite lower VIP hold.

Here are some takeaways:

Market

• Mass revenues grew 27%, off of a 31% comp
• Rolling Chip (RC) volume tumbled 10%, worst performance since May 2009
• VIP revenues fell 17%, its worst performance since June 2009
• Slots revenue grew 2%
• Assuming normal hold in both periods, GGR would’ve grown +1% YoY 

LVS

• GGR grew 4% YoY – the slowest rate since Sept 2011
• The LVS properties held at 3.3%, higher than the 2.8% seen in June 2013
• Still, VIP revenues fell 14% and RC dropped an alarming 28%, the worst performer in the market
• One would expect high hold to negatively impact volumes but not this much
• Mass grew 25%, the slowest rate since February 2012 

WYNN

• GGR declined 10%
• WYNN held 2.7% on VIP vs 3.0% last June
• WYNN VIP revenues dropped 26% while RC volume fell 20%
• Thanks to easy comps, mass growth of 55% led the market.  For Q2 2014, WYNN mass have grown 48%.

 MGM

• GGR declined 10% for the 2^nd consecutive month
• MGM held close to normal, in-line with last June
• Mass growth of 39% is relatively consistent with the YTD average growth
• VIP revenue and VIP volume fell 23% and 21%, respectively.

MPEL

• Held well below normal on VIP (2.1%) compared with 3.2% last June
• MPEL had the worst GGR performance at -20%, worst performance since June 2009
• RC volume continues to be a major drag – falling double digits for the 4^th consecutive month
• Mass grew 34%, in-line with recent trends

Galaxy

• Galaxy’s +6% GGR growth is what kept the market from tumbling further.  It was the best performer despite lower hold.
• Hold was 2.8% vs 3.3% last June
• Mass grew only 17% - the slowest in the market
• Galaxy was the clear winner in the VIP race with RC volume growing 19% and VIP revenue up 2%