Macau gaming stocks will be active today after the Macau Gaming Inspection and Coordination Bureau reported gross gaming revenue grew 25.9% year-over-year in June. While that was below some mid-month estimates (closer to 30%), it is still the highest growth rate of the year.
Gross gaming revenue continues to accelerate and is now up 17.2% year-to-date. Comparisons will start to get a more difficult in the second half of the year, but the market appears to be much stronger than it was last year. Macau gaming revenue peaked in 2014 and then fell 34% in 2015 and 3.3% last year after the Chinese government cracked down on money laundering and corruption in Macau, which crushed the VIP segment of the gaming market.
Macau accounts for more than two-thirds of Wynn Resorts' (WYNN) adjusted EBITDA -- the most common measure of profit for casinos/lodging stocks. Last year, Macau accounted for 85% of Melco Resorts' (MLCO) adjusted EBITDA, 54% for Las Vegas Sands (LVS) and 17% for MGM (MGM). Wynn Resorts (WYNN), Melco (MLCO) and Las Vegas sands (LVS) are down ~1% premarket whie MGM is slightly higher