MACAU WEEKLY ANALYSIS (JUNE 15-21)

Takeaway: Following the May pause, June has resumed the sequential softening trend of the last 15 months

CALL TO ACTION

We are forced to lower our June forecast yet again. Bad luck in the VIP segment may be partly responsible, but volumes also appear softer. Following a few hints of stability in May, June has resumed the softening sequential trend. 2015 and 2016 Street EBITDA estimates are very much in doubt – we’re not even confident with our below consensus projections – not just from a potentially lower top line. We also think the Street has the mix wrong – base mass is worse than expected, with significant margin and EBITDA implications.

Please see our detailed note: http://docs.hedgeye.com/HE_Macau_6.23.15.pdf