Macau June Gambling Revenue Up 12%, Slightly Missing Expectations

   By Kate O'Keeffe 
 

Gambling revenue in Macau last month rose 12% from a year earlier, as the rate of growth in the Chinese territory continued to moderate from the aggressive pace of previous years.

Total revenue in June was 23.33 billion patacas ($2.92 billion), up 12% from MOP20.79 billion in the same month last year, Macau's Gaming Inspection and Coordination Bureau said Monday. The growth rate rebounded from May's 7% year-on-year rise, but was still below analysts' expectations.

In the first six months of the year, revenue rose 20% from the same period in 2011 to MOP148.7 billion.

Gambling revenue growth has shot up since the end of 2009, but analysts expect the pace to slow this year due to a high base of comparison last year and concern about the sustainability of strong growth in VIP play amid liquidity concerns in China. The most bearish 2012 gambling revenue growth estimates for the territory hover around 11%, compared with growth of 42% in 2011.

Bank of America Merrill Lynch analyst Billy Ng wrote in a note Monday that he wasn't sure whether the slowdown in the second half of June was due to temporary issues--such as the European soccer tournament, which may have diverted gamblers from Macau, bad luck at the casino tables, or a typhoon that struck June 29; or structural issues--such as a weakening Chinese economy. However, he said the 11% drop in revenue from the previous month was typical for June.

Macau, the only place in China where casino gambling is legal, is the world's largest gambling center. Last year it earned more than five times the gambling revenue of the Las Vegas Strip.

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