Macau's Losing Streak Extends To 15 Months
According to data released by the Macao Gaming Inspection and Coordination Bureau, gaming revenue in the month of August came in at 18.6 billion patacas, about 35.5 percent lower than August 2014.
Shares of Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL), Las Vegas Sands Corp. (NYSE: LVS), MGM Resorts International (NYSE: MGM) and Wynn Resorts, Limited (NASDAQ: WYNN) all opened down on Tuesday following the news.
Has Macau Found A Bottom?
August marks the fifteenth consecutive month of negative gaming revenue growth in Macau, but shareholders of Macau names had hoped that they had reached a turning point.
Related Link: Is Macau Coming Back?
February marked the high point for gaming revenue declines so far in 2015 at -48.6 percent. Since February, each subsequent month has seen smaller and smaller declines until the August number halted that trend and came in slightly worse than July’s -34.5 percent.
The Bad News Barrage
Macau has seen a seemingly constant stream of bad news over the past year. Last year, the Chinese government announced a crackdown on corruption in Macau.
Increased government scrutiny coupled with a weakening Chinese economy led to a major falloff in VIP gamblers.
In addition, recent talks of expanding the partial smoking ban instituted in Macau casinos in October and capping the number of visitors to Macau from mainland China have increased pressure on stocks.
Stocks Hurting
The Chinese economic instability in recent weeks, which included the decision to devalue its currency, is just the latest piece of bad news for Macau stocks.
Shares of Las Vegas Sands, Wynn and Melco Crown Entertainment all hit new multi-year lows in August.
Disclosure: The author owns shares of Melco Crown Entertainment.
Image Credit: Public Domain
See more from Benzinga
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
