You know your industry is entirely fucked when a -0.1% revenue cut is considered momentum and good news for the sector.
While still weak, this number represents a sharp gain, compared to median estimates of -2%.
“Macau’s gaming revenue picked up strong momentum since the latter part of the Chinese New Year holiday, despite a somewhat slow start in the beginning,” Sanford C. Bernstein analyst Vitaly Umansky said in a note before the data. Despite continuing volatility, he expects long-term growth for the industry as it shifts focus from high-rolling gamblers to mass market patrons.
This news is very likely to provide succor to casino stocks, especially WYNN.
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They have arrested at least 50,000 since last September and even the top DA about 2 days ago on corruption charges. Macau is primarily a tool of the rich to smuggle money out of China. Without that, which the China Govt has been stopping, it’s dull at best. Lot of hotels opening this year on hopes that the masses will come, but OMG if this is the best they can do at it’s PEAK time, the rest of the year is ugly. Wynn said the Chinese New Year was Make or Break….I vote break.
Main problem over there is access to funds. Prob 90% of revenue is from mainland China high-rollers and gaming-related.
Mainland gov’t has put in a very restrictive process for using the funds in Macau which is ridiculously complicated where they try to verify not just that the funds are legit but how it was earner. Basically trying to stop capital outflows. Was there a couple months ago and for an American buddy of mine to pull a six figure line of credit it took about 3-4 hours (lots of forms + questioning) even though all his stuff is legit and collateralized by cash in US banks