Macau has showed that it can weather a financial hurricane after the latest global downturn failed to affect it. The latest figures show the enclave’s revenue from the casino business grew 57% in August to MOP24.8billion ($3.09bn). It led CSLA analyst Aaron Fischer to comment, “August growth was spectacular and demonstrates the limited impact from global macro concerns (and) tighter money supply in China,”
High rollers continue to drive the growth in revenues and much of that business is done through junkets. This is a part of the process that may change with the introduction of cash-only online junkets. The amount of high rollers will likely stay the same though as will the efforts of Chinese authorities to stifle the gambling industry ever so slightly.
RBS analyst Philip Turk put a slight dampener on proceedings by stating that he expects growth to slow next year. Slow. That sounds bad, right? The “slow” would be gambling revenue rising by 18% in 2012 and then just 16% in 2013. It’s like being Usain Bolt trying to better your own world record. The gains go to show the growth is anything but diminishing in what we like to call the biggest continent in the global gambling industry.
Galaxy Entertainment Group is seeing part of its business sold off as one investor is sprinting out of the Galaxy kitchen. Permira, a private equity investor, sold its shares for more than twice the amount they paid for them some time ago. It’s not so much that they can’t stand the heat, it’s just that they found out the fungi inherited four years ago has matured and is now worth a helluva lot more. The deal raised HK$4.78billion ($613m) for Permira and it means that their current stake in Galaxy will be reduced from 19.3% to 12.8%. In a press release, the firm added, “We are confident of further appreciation in the value of the company and the investment. As such, the Permira funds currently have no immediate plan to dispose of further shares in the company and intend to continue to hold the remaining shares as long-term investment.”
This was after Galaxy’s recent results disappointed in a year that they opened the enclave’s newest venue.