Wynn Resorts leading Macau stocks higher following June gaming data that remains very weak but was slightly better than feared
WYNN +7%, MPEL +5.5%, LVS +4%, MGM +2%.
Macau Gaming Inspection and Coordination Bureau reports June gross gaming rev (GGR) -36.2% YoY at 17.4 bln patacas ($2.13 bln), slightly better than feared as data leaks on a weekly basis, vs. -3.7% in June 2014 and -37.1% last month.
- Macau GGR is down 37% YTD, which is ~unchanged over the last four months.
- Macau gross gaming rev has declined year-over-year for the thirteenth straight month following increased regulation:
- Officials cracked down on the illicit funds flowing through the region via junket operators running the VIP gaming market; a smoking ban in the casinos and macro headwinds are creating additional headwinds.
- GGR fell 2.6% in 2014 after rising 12.6% in the first half of the year as declines accelerated into year end; GGR grew 18.6% in 2013 and 13.5% in 2012.
- GGR hit its lowest level since November 2010.
- Sentiment on Macau stocks is in flux as declines in GGR persist but some analysts anticipate a bottom.
- Comps will now start to ease as we lap the declines in 2H14.