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LVS Macau mass market share drops in Sept., Wells Fargo says

Las Vegas Sands was the biggest loser in terms of mass market share among the U.S.-listed operators in Macau in September, according to Wells Fargo research.

For the market as a whole, unadjusted mass revenue fell 33 percent year-on-year, with junket volumes down 54 percent and VIP revenue off 34 percent, the analysts said in a note. All operators saw mass revenues fall for the tenth straight month.

Wells Fargo said LVS lost about 400 basis points in market share last month, with its overall mass revenue falling 35 percent. VIP was down 35 percent. Its share of the mass market fell to 26.3 percent.

At Wynn Resorts, mass revenue was down 18 percent, though its adjusted mass share increased 230 basis points to 9.4 percent. VIP revenue was down 46 percent and junket volumes declined 60 percent.

During the month, reports emerged of theft by an employee at junket operator Dore, which was operating out of Wynn’s casino.  

Melco Crown’s figures for the month were affected by a reclassification of tables, with about 50 percent of its premium mass tables shifting to VIP. On a like-for-like basis, mass revenue was down about 28 percent, with a fall in junket volume of 50 percent.

At MGM Resorts, mass revenue also fell 35 percent, though its share of the market grew 40 basis points to 7.4 percent, the note said. VIP revenue was down 33 percent and and junket volumes tumbled 58 percent.

Wells Fargo said weakness was across the board in September, with the 17th monthly decline for junket volume and weak slot revenue, and as a result it now expects revenue in October to be off about 30 percent to 34 percent, compared with its earlier estimate of a drop for the month of between 27 percent and 31 percent.

It also says it sees further downside risk to its full-year estimates. The note didn’t include numbers for SJM Holdings or Galaxy Entertainment.



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