• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

The Macau Metro Monitor, April 5th, 2010

CASINO REVENUE UP 57% IN QUARTER South China Morning Post

Macau casino revenue soared to a near-record MOP 13.569BN in March 2010 (a record MOP 13.937BN was set in January 2010), up 42.4% from a year ago and 1.3% higher than February, according to the Macao Daily News. The rebounding economy and robust liquidity on the mainland have fueled VIP gambling volumes, while tourist arrivals rose 15% in the first two months this year. First-quarter casino revenue rose 57.2% from a year ago to MOP 40.91BN, putting Macau on pace to hit a record MOP 160BN this year.

COTAI IS THE FUTURE: MELCO CROWN macaubusiness.com

Gaming operator Melco Crown has finally explained why it terminated an agreement to acquire a Macau Peninsula site where it planned to build a casino. “Our decision to terminate the agreement to acquire the Macau Peninsula site was based on our view that Cotai has established itself as the primary location for future development projects,’’ the company said in its annual report, filed on Wednesday. Melco Crown terminated the agreement to purchase the HK$1.5BN site in December 2009. According to an earlier report in the Sydney Morning Herald, the land is owned by companies associated with the third wife of Stanley Ho Hung Sun, Chan Un Chan.

Melco Crown also mentioned it is finalizing a revision to its land lease agreement for City of Dreams that would expand developed gross floor area by ~1.6MM sq ft. so that it may consider adding an apartment hotel tower at CoD.

Finally, Melco Crown states that its agreement with New Cotai to operate the Macau Studio City casino remains in place. However, the company notes that the formal opening of Macau Studio City has not yet been announced and that there are consensus problems amongst the resort developers – eSun Holdings, CapitaLand Integrated Resorts and New Cotai – regarding the development and the timing for the completion of financing.