Macau Casinos collect $9.9 Billion in First Quarter
2011 saw Macau casinos bring in an incredible $33.5 billion in revenue, which was five times what the world’s second biggest gaming destination, Las Vegas, made last year. But as well as Macau did in 2011, they are on track to blow this record away since their 34 casinos collected $9.9 million in the year’s first quarter; this is a 27% increase from the first three months of 2011.
So far, Macau casinos have averaged $3.3 billion per month this year, but this slightly dipped in March when the casinos pulled in $3.12 billion. Even still, this is a 24% increase from March, 2011, and analysts predict that the gambling mecca could see a 22% overall increase by the end of 2012.
There’s the potential for an even larger-than-expected annual increase since next month will see the Sands Cotai Central open, thus bringing the area’s casino total to 35. This new venue, which is owned by the Las Vegas Sands Corp., will feature four hotels, a shopping district, and a large convention space.
JP Morgan gaming analyst Joe Greff sees a positive future for the Sands Cotai Central as he said, “In short, we see solid results ahead. Besides strong top-line growth, upward revisions to earnings driven by margin expansion would be an additional driver as the high-margin mass-market segment continues to outpace the low-margin VIP segment.”
Steven Wieczynski, who is a gaming analyst from Stifel Nicolaus Capital Markets, also predicts a strong opening for Sands Cotai since he mentioned, “With the first stage of its Cotai Central project set to open in a few short weeks, we believe Las Vegas Sands stands to benefit from having a two-to-three-year window of being the only new capacity on Cotai.”
With a new major casino opening soon and an excellent first quarter, the growth of Macau doesn’t look to be slowing down any time soon.