Macau casino stocks slip after May revenue report

[LolRol]

Macau's gross gaming revenue failed to reach analysts expectations in May leading to several casino operators experiencing a decline to their share values.

Macau's gambling commission, The Gaming Inspection and Coordination Bureau, showed in its latest monthly report for May that gross revenue from games of fortune only totalled $3.15 billion during the month. Despite the revenue being higher than the $2.82 billion it registered during the same period last year, it  more importantly came in well below analysts’ expectations for the month. https://www.gamblinginsider.com/news/5360/macau-casino-stocks-slip-after-may-revenue-report

[GoRoller]

Good News!

[GoRoller]

I also saw this news today, what do you think about it?

[stomachgrowls]

According to the article the main reason of such decline is this:

"One of the reasons reported to exacerbate the reduction in casino share value and the revenue decline is a result of increased reports surrounding a Chinese Government crackdown on cash outflow to and from the region."

Clamping cash outflow can really take significant effect when it comes to growth. 16-20% growth per year is their target but they did only reach 12% theres really a decrease but still a considerable percentage for investors,since they do know the factor affecting it then they should make action on how to get it back if they would like to sustain.

[Rinsend]

ahh. this is very complete news. thank you for providing this info. because of my current busyness so I'm a bit left with news from gambling. I am still waiting for the latest update from macau

[avikz]

Good News!

How it can be a good news? Gave you tried to read the thread or the visited the news link?

Macau's gross gaming revenue failed to reach analysts expectations in May leading to several casino operators experiencing a decline to their share values.

Macau's gambling commission, The Gaming Inspection and Coordination Bureau, showed in its latest monthly report for May that gross revenue from games of fortune only totalled $3.15 billion during the month. Despite the revenue being higher than the $2.82 billion it registered during the same period last year, it  more importantly came in well below analysts’ expectations for the month. https://www.gamblinginsider.com/news/5360/macau-casino-stocks-slip-after-may-revenue-report

The decline is just for a month and technically we can't really call it a decline. It has just failed to reach the expectation of the market analysts. What important is that, it has accounted growth of 0.33 billion usd on yoy basis. That is certainly not a decline in growth. These businesses run on various factors and usually see decline and growth at various times of the year. I am sure it will grow in coming months especially during October to December as it is the season for tourists.

[adaseb]

I trade a few different stocks like MGM on the NYSE and I am seeing stocks coming down also but not by much.

There is alot of speculation why this is so. Most likely non of it is related to crypto. I highly doubt sites like Bitsler or Primedice are taking profits away from Bellagio.

Some are saying that large whales are concerned with the political issues on-going with Trump and they are expecting a market downturn and want to instead invest in risk-off instruments like Gold instead of gambling it away.

[Don Pedro Dinero]

Well, I’m not going to feel sorry for them. I wouldn’t if it was a real decline but just failing to meet the growth expectations means that owners and shareholders are going to have a bit less money in their pockets, and it is just one month.

[audaciousbeing]

Macau's gross gaming revenue failed to reach analysts expectations in May leading to several casino operators experiencing a decline to their share values.

Macau's gambling commission, The Gaming Inspection and Coordination Bureau, showed in its latest monthly report for May that gross revenue from games of fortune only totalled $3.15 billion during the month. Despite the revenue being higher than the $2.82 billion it registered during the same period last year, it  more importantly came in well below analysts’ expectations for the month. https://www.gamblinginsider.com/news/5360/macau-casino-stocks-slip-after-may-revenue-report

I am not surprised of the report and would more concerned if it had been otherwise just like a company declaring excessive dividend when the industry is in shambles because its expected. When the whole of platforms that aid the spread of crypto currency thereby leading to increase in activities was doing everything possible to frustrate the moves eg Facebook, Twitter and comments targeted against crypto currency without mentioning countries like China that have stifle the growth of crypto, no words of support from them was  heard despite the amount of revenue coming to them by issuing licences and regulating activities, they were there hoping for miracles to happen or thought crypto market is solid enough for all of those attacks not to have any effect.

The simple truth is that if something is not done concerning the attacks on bitcoin, the revenue is expected to drop further and it would affect every businesses running with the aid of the currency from the gambling sites to the exchange sites etc.

[boy130]

I really don't see why people even consider the gross revenue of anything... It's not really relevant. The only thing that actually matters is the changes in profitability, unless you are look at changes in market capture. It is possible to increase profitability, whilst having a reduction in gross turnover. Incomplete report.

[Baofeng]

According to the article the main reason of such decline is this:

"One of the reasons reported to exacerbate the reduction in casino share value and the revenue decline is a result of increased reports surrounding a Chinese Government crackdown on cash outflow to and from the region."

Clamping cash outflow can really take significant effect when it comes to growth. 16-20% growth per year is their target but they did only reach 12% theres really a decrease but still a considerable percentage for investors,since they do know the factor affecting it then they should make action on how to get it back if they would like to sustain.

Ok. And I also noticed the influx of a lot of Chinese players here in our country. Every time I went to the top 3 casinos here, there are literally hundred of Chinese players, so it got me thinking what are they all doing here? Why not Macau? So probably it has something to do with clamping the cash flow and now they just travelled outside and play and maybe that's a factor as well as to why the revenue is declining. Its interesting to see what will be the revenue report of the big 3 casino's and maybe we can correlate them with the decline in Macau.