Macau Revenue Reports Sends Sand’s Stock Climbing
Recent news of the continued growth of gambling revenues in Macau, sent shares of Las Vegas Sands Corp (LVS: 19.50 +1.14%) climbing Monday.
LVS stock rose from $15.67 to $17.11 during yesterday’s trading session, up $1.61 since Friday’s closing price of $15.50.
The Chinese gambling enclave has become a vital market for U.S. based casino operators since gaming revenues continue to surpass that of Las Vegas.
Macau continues to post strong year-over-year results with revenue steadily increasing as many of the U.S. gaming destinations continue to suffer from the economic downturn.
According to Susquehanna Financial analyst Robert A. LaFleur reports from the region showed nearly a 65% increase in gaming revenue in January, setting a new monthly record for the market.
The Wall Street Journal recently reported that Sterne Agee’s Bain noted that Sands could be one of the biggest beneficiaries of a revenue increase in Macau as it has more mass play exposure than the rest of the industry.
Mass play has higher margins than VIP play, which accounts for over 65% of the marketplace and Bain estimates about 40% of Las Vegas Sands’ revenue in Macau comes from mass play.
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