The incredible growth continues in Macau despite tougher year-over-year comparisons. After revenues in Macau grew by 48.0% in March, 47.7% in February, and 33.2% in January, the momentum continued by growing 44.6% in April to $2.56 billion. There seems to be no end in sight to the incredible growth.
For investors so far, the Macau news has been overshadowed by earnings, as investors try to digest how fast casino companies can grow. Las Vegas Sands (NYSE: LVS) reported less-than-encouraging results that put a halt to the exuberance temporarily. And competition could be picking up as the year goes on.
In Macau, Galaxy Entertainment is entering the picture with Galaxy Macau near Venetian Macau. That could take gaming revenue from Las Vegas Sands and Melco Crown (Nasdaq: MPEL) on the Cotai Strip. And Sands' sites 5 and 6 will open late this year or early next year to add more competition.
But no matter how you think the pie will be sliced, the fact is, the pie is expanding at an incredible rate, so there's enough to go around. MGM Resorts (NYSE: MGM) and Wynn Resorts (Nasdaq: WYNN) are both enjoying success in Macau, and both are looking forward to joining the Cotai Strip in the future.
So far this year, Macau has averaged 43.4% revenue growth over last year, but comparisons get tougher as the year moves on. How much do you think gaming revenue will grow this year? And what will be the monthly gaming revenue in December? Leave your best guess in our comments section below.
Don't forget to keep up with all of our Foolish gaming analysis with by adding your favorite stocks to My Watchlist.
- Add Las Vegas Sands to My Watchlist.
- Add Melco Crown to My Watchlist.
- Add Wynn Resorts to My Watchlist.
- Add MGM Resorts to My Watchlist.
