Casino revenue in Macao climbed by a year over year 20% in August, marking a 13th consecutive month of growth–despite two typhoons the left half of the city without power and water for as many as four days.
Analysts had been looking for 17% to 22% growth in casino revenue before the typhoons. Analysts did say that without the typhoons growth would have been even higher and estimate that the storms, which killed 10 people, resulted in casinos losing 5% to 7% of revenue in the month.
The big international casinos located on Macao’s Cotai Strip saw less damage and recovered more rapidly due to newer infrastructure and back-up power generators. Package tours resumed in the weekend after the second typhoon landed.
Shares of MGM Resorts International (MGM), which is due to open a new casino on the Cotai Strip at the end of 2017, are up 10.84% from August 17 to 3 p.m. today, September 6. MGM Resorts is a member of my Jubak Picks portfolio.
