BUSINESS

Macau newsbites: Melco Crown project on the rocks; MGM China praised; VIP room promoters enjoy June

TAGs: AERL, Macau, melco crown, MGM China

macau newsbitesIt has been confirmed that Melco Crown’s latest project won’t include a casino. The Secretary for transport and public works, Lau Si, confirmed that the revised land grant for Studio City in 2008 didn’t include gaming facilities. The company bought a 60% share in the Macau Studio City project for US$260m just last month. Seems like they might have to start diversifying into other sectors sooner than they’d thought. Disneyland Macau anyone? Maybe even Dollywood in the East. Opportunities are endless!

A research firm on the enclave has given praise to MGM China Holdings by labeling them its top pick for gaming stocks in the region. In a statement, Union Gaming Research Macau (UGRM) stated the company “is just beginning to hit its sweet spot and demonstrate the true potential of its existing asset, MGM Macau.”

The firm’s VIP volume, mass market and slots were given particular praise, with the statement adding, “We think MGM Macau has the potential to break the US$600 million (MOP4.8 billion) EBITDA level in 2011,”

One of Macau’s largest VIP room gaming promoters has had quite the successful June. Despite absorbing the closure of a VIP room at the MGM Macau midway through the month, Asia Entertainment and Resources Ltd (AERL) saw unaudited rolling chip turnover up by a huge 117% to a figure of US$1.504bn. This was in addition to the first sixth months of the year seeing their rolling chip turnover reach $8.406bn, also up by a staggering 94%. Macau doesn’t do things by the half, does it!

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com