THE M3: ADELSON INSIGHT; MGM MACAU; ZHUHAI SALES DROP 50%

The Macau Metro Monitor, June 25th, 2010

 

HAS ADELSON LOST HIS HEART FOR MACAU? Intelligence Macau

 IM would not be surprised if Adelson decides to scratch Lots 7&8 off and focus on other Asian opportunities such as those in India, Japan, and Korea. Focused on the higher margin mass and premium-direct businesses, the Venetian, Plaza, and Sands casinos have been steadily losing share of rolling-chip junket play in recent months due to their stubbornness in not discounting heavily enough to the junkets. However, increasing the junket discounts would also mean increasing direct VIP rebates, which would hurt margins.  IM believes Adelson may throw in the towel and give in to higher commissions if Sands China's market share falls below 20% this month.

 

MASS PICKS UP NICELY, ESPECIALLY AT MGM Intelligence Macau

In May, MGM Macau recorded a 30% jump in mass.  Why?  IM attributes the rise to higher hold, traffic from Encore opening (MGM's entrance sits directly across the road), easy comps, and perhaps, the mass floor reaching critical mass.  IM also believes strong mass numbers from Grand Lisboa bodes well for Wynn, MGM ,and Sands.


ZHUHAI TRANSACTIONS DROP 50% Macao Daily

Statistics released by the Zhuhai government showed that the property market in Zhuahai saw average prices drop 12% in May, compared with April.  Trading volume tumbled 50% from 2,585 to 1,327 transactions.