Macau to eclipse last year; Junket operators increase; Melco Crown hits new high

Jamie Hinks
January 27, 2012
5 Comments

macau casino stripA scholar has added to the constant tide of praise surrounding the largest gaming destination on the planet by stating that revenue figures will eclipse last year’s total in 2012. In an interview with TDM, Davis Fong said: “Based on last year’s MOP268 billion patacas, we think in 2012 the overall gross gaming revenue will reach MOP300 million.”

In USD that $37.5bn and it’s expected that once Sands Cotai Central opens the figure will be even higher still.

Junket operators are at their highest level to date with the enclave continuing to count on VIPs for much of its revenue. Figures quoted by Macau Business show there are 219 licenced junkets working in the enclave. This is an increase of 13% from the previous year and still higher than the record – 186 in 2007. The figure means there are six licenced junkets for every casino operating in Macau.

Melco Crown Entertainment hit its top level in around three months after Macau-based analysts projected the enclave’s highest ever growth. American depository receipts for the firm increased 6.8% to $12.06 and at one point in the day they’d even risen as high as  $12.18 – a rise of 7.9%. The rise was triggered by yesterday’s projection by Union Gaming Analyst Grant Govertsen that the city could break its own revenue record this month. Vegas must be thinking, “as if they needed a kick up the backside!” Govertsen also added that table occupancy has been high since the Chinese New Year holiday started on January 23.

Company shares were recently floated on the Hong Kong Stock Exchange and it was the same story there as they gained 2.6% to close at HK$29.35. US analyst David Bain, from California-based Sterne Agee & Leach Inc also restated his “buy” recommendation for the firm’s shares and even set a 12-month price target of $21.50. That would really crown off the current year for the JV.

If you have any further information related to this story that you would like to share with us privately please click here.

Can't get enough CalvinAyre.com? Follow us on Twitter and Facebook, then you'll never miss out on the latest gaming industry news.

Share
Tags: Article, junkets, Macau, Melco Crown Entertainment
Views and opinions expressed are those of the Author and do not necessarily reflect those of CalvinAyre.com
  • http://calvinayre.com/2012/01/30/business/gaming-industry-news-weekly-recap-january-28/ Weekly Gaming Industry News Recap Jan. 28 | Gambling News

    [...] its Manila Bay Resorts project; Macau is on track for another record month, maybe because there are more junket operators than ever; a Taiwanese whale lost his bid to cancel his Macau marker and the Asian Poker Tour added [...]

  • http://calvinayre.com/2012/01/30/casino/asian-casino-business-given-further-boost/ Casino news | Future bright for Asian casino businesses

    [...] Casino business stocks in the gambling industry’s largest market have been given a significant boost by an investment manager. Andrew Graham, manager of Martin Currie Pacific Trust, identified the region’s industry as the best way to get into Asia’s attractive consumer market. The report, published on Investment Week, picks out SJM Holdings and Genting Bhd as two of the best bets alongside any firm choosing to open up a casino on Macau’s Cotai strip. [...]

  • http://calvinayre.com/2012/01/31/casino/macau-boosted-again/ Casino news | Macau gets further boost

    [...] Macau received its latest boost from Wells Fargo analysts who, according to Lusa News Agency, project gross gaming industry revenue to hit MOP23.4billion. It would mean a rise of around 25% compared with last year and reflects earlier predictions that the timing of Chinese New Year would be huge for the enclave’s casino business. Cameron McKnight, analyst at Wells Fargo, did add that February’s revenues could decrease by around 14% year-on-year thanks to the timing of Chinese New Year. It still means there’s been a rise in visitors and shows Macau is still on its way up. [...]

  • http://calvinayre.com/2012/01/31/business/hong-kong-gambling-stocks-weaken/ Business News | Gambling stocks decline in Hong Kong

    [...] could be the reason for these dips in gambling stocks? Is it merely an unsteady month? With Macau receiving its latest boost from Wells Fargo analysts who project gross gaming industry revenue to [...]

  • http://calvinayre.com/2012/02/09/legal/tony-tong-pacific-financial-talks-about-junket-regulation-macau-ca-video/ Gaming Industry | Tony Tong Interview About Junket Regulation | Legal

    [...] Ng interviews Tony Tong, co-founder of Pacific Financial, and they talk about the junket regulation and licensing, formally called as gaming promoter license, in Macau. Let’s hear [...]