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As Investors Bail, Macau Revenue Breaks Disappointing Run by Muhammad Cohen

Macau investors can breathe a bit easier. After three consecutive disappointing months, Macau casino revenue for August clocked in at 26.6 billion patacas (MOP; US$3.3 billion), up 17.1% from a year earlier, when Typhoon Hato ravaged the city and its gaming business. But this August’s robust growth was about more than better weather. Despite some proverbial “interesting times” for Macau gaming, the growth story based on transition from VIP gambling center to a mass market based tourist destination continues.

Following the precipitous drop that began in June 2014, this year’s nervousness – and collective Macau casino share price declines approaching double digits through second half earnings announcements – are undeniably real. The 2014-16 slump saw casino revenue tumble by 38% and share prices fare far worse. Gross gaming revenue in May, June and July disappointed industry watchers, though profits for the last four quarters through Q2 2018 match the sector’s record for the 2013-14 pre-crash peak, according to Union Gaming Managing Director in Macau Grant Govertsen.


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