Which Companies are Giving Las Vegas a Run for its Money?

The Macau gaming industry is booming and according to Citi (NYSE:C) estimated revenue for casinos in the region could total almost $30 billion this year.

In comparison Las Vegas gaming revenue was $10.2 billion in 2009 and is not expected to reach $12.5 billion until 2014.

Unlike the Las Vegas casinos which are only now recovering from the recession and have to deal with new American competitors, the Macau casinos did not feel the heat of an economic downturn and have only increased their wealthy customer base.

Macau-related stocks outperformed the Hang Seng Index (NYSE:FXI) by 118% in 2010, driven by 58% gaming revenue growth.

But it’s not just about big revenues. It’s also about luxurious, massive casinos that are easy on the eyes.

MELCO CROWN ENTERTAINMENT: More traffic will keep earnings up

MELCO CROWN ENTERTAINMENT: More traffic will keep earnings up

Image: horasis.org

CEO: Lawrence Ho Ticker: (NASDAQ:MPEL)

Macau properties: Crown Towers, Hard Rock Hotel, Grand Hyatt Macau (NYSE:H), Altria Macau

Citi expects Melco to generate earnings before interest, taxes, depreciation and amortization of nearly $129 million which is 7% above the current consensus of $120 million.

The People’s Bank of China rate hikes and a liquidity crunch from the mainland could hurt Melco’s VIP business, but near-term growth is expected to be sustainable.

Expansion Plans: CEO Lawrence Ho said they were going to focus on strengthening the City of Dreams brand and would like to invest more in Macau.

Source: Citi

MELCO CROWN ENTERTAINMENT: Melco Towers in Macau

MELCO CROWN ENTERTAINMENT: Melco Towers in Macau

Photo Source: Melco Crown

Melco Crown has reached a deal with the Macau government to alter the design for the towers.Source: Citi

MELCO CROWN ENTERTAINMENT: Grand Hyatt Macau

MELCO CROWN ENTERTAINMENT: Grand Hyatt Macau

MELCO CROWN ENTERTAINMENT: Melco Altria

MELCO CROWN ENTERTAINMENT: Melco Altria

Citi values Altria at 10 times the 2011 Enterprise Value/Earnings before Interest Taxes, Depreciation, Amortization. It is a 38-story complex with 216 rooms.Source: Citi, Melco Crown

MGM RESORTS INTERNATIONAL: Looking to expand

MGM RESORTS INTERNATIONAL: Looking to expand

Image: AP

CEO: Jim Murren Ticker: (NYSE:MGM)

Macau properties: MGM Grand Macau

The company owns the MGM Grand Macau in partnership with Pansy Ho, casino billionaire Stanley Ho’s daughter.

The Macau operation is now using 427 gaming tables instead of around 380 which it did for most of 2010 because it sees so much potential in the area.

MGM Resorts has had a boost with the recent recovery in Las Vegas and the launch of its new customer loyalty program, M life.

MGM RESORTS INTERNATIONAL: MGM Grand Macau

MGM RESORTS INTERNATIONAL: MGM Grand Macau


LAS VEGAS SANDS: With two more sites opening by 2012 it is poised for massive revenue growth

LAS VEGAS SANDS: With two more sites opening by 2012 it is poised for massive revenue growth

Image: AP

CEO: Sheldon Adelson
Ticker: (NYSE:LVS)

Macau Properties: Venetian Macau, Plaza Casino, Four Seasons Hotel Macau, Sands Macau

Revenue generated by the three casinos in Macau totaled $952.8 million in the fourth quarter. By comparison, its two Las Vegas properties generated $263.7 million.

Expansion Plans: It will open gaming Sites 5 & 6 by 2012 which Citi expects will boost it to becoming the big market-share winner, rising to an estimated 22% of the market from 19% in 2011.

Source: Citi

LAS VEGAS SANDS: Sands Macau

LAS VEGAS SANDS: Sands Macau

LAS VEGAS SANDS: Venetian Macau Hotel and Plaza Casino

LAS VEGAS SANDS: Venetian Macau Hotel and Plaza Casino

Photo Source: Las Vegas Sands

Opened in 2008, it is the largest single block style hotel in Asia and one of the largest buildings in the world.Source: travelchinaguide


LAS VEGAS SANDS: Four Seasons Hotel Macau

LAS VEGAS SANDS: Four Seasons Hotel Macau

The hotel has 360 rooms.Source: Four Seasons

GALAXY ENTERTAINMENT: Increasing market share with opening of Galaxy Macau this year

GALAXY ENTERTAINMENT: Increasing market share with opening of Galaxy Macau this year

Image: casinodesignmagazine.com

CEO: Michael Mecca Ticker: (NYSE:MGM)

Macau Properties: Starworld Hotel and Casino (NYSE:HOT), Waldo Casino & Hotel, President Hotel & Casino, Rio Casino, Grand Waldo Casino, opening the Galaxy Macau in March

It is expected to grow an additional 15% to nearly $34 billion in early 2012.

Expansion Plans: The Galaxy Macau which is opening with 2,200 rooms in March, is expected to become the largest market share winner this year and will be as competitive as major casinos such as Venetian Macao and Wynn Macau.

This building will be ready before the two new Sands sites.

It will be helped by the new Zuhai North-Gongbei Gate extension of the MRT line.

Source: Citi

GALAXY ENTERTAINMENT: Galaxy Macau

GALAXY ENTERTAINMENT: Galaxy Macau

Image: Galaxy Entertainment

It will be completed by March of this year.

GALAXY ENTERTAINMENT: Grand Waldo Hotel and Casino

GALAXY ENTERTAINMENT: Grand Waldo Hotel and Casino

Photo Source: AP

It has 316 gaming machines and 115 table and poker games.Source: Galaxy Entertainment

GALAXY ENTERTAINMENT: Galaxy Starworld Hotel & Casino

GALAXY ENTERTAINMENT: Galaxy Starworld Hotel & Casino

It has 240 gaming tables and a total of 500 slots.Source: Galaxy Entertainment

GALAXY ENTERTAINMENT: President Casino & Hotel

GALAXY ENTERTAINMENT: President Casino & Hotel

The President Hotel Macau added its own casino a few years ago. It has 60 gaming tables. Source: Galaxy Entertainmet

GALAXY ENTERTAINMENT: Rio Casino & Hotel

GALAXY ENTERTAINMENT: Rio Casino & Hotel

It is within walking distance of the Hong Kong-Macau Ferry Terminal and 15-minutes from Macau International Airport by car. It has 449 rooms.Source: Galaxy Entertainment

Photo Source: AP

SJM HOLDINGS: Surge in share price in 2010

SJM HOLDINGS: Surge in share price in 2010

Image: AP

CEO: Dr. Ambrose So Ticker: HKG

Macau Properties: Grand Lisboa, Casino Lisboa, Casino Oceanus at Jai Alai, Casino Ponte 16, Casino Babylon, Casino Casa Real, Casino Lan Kwai Fong Macau, Casino L’Arc Macau, Casino Macau Jockey Club, Casino Golden Dragon, Casino Kam Pek Paradise

The company experienced a 182% increase in its share price on the Hong Kong Stock Exchange in 2010.

SJM also recaptured lost market share throughout the past year, averaging 31% of the far larger market, up from 28% in 2009.

Expansion Plans: It is having some difficulty with government permits but it plans to add two more sites in Cotai.

Source: Citi

SJM HOLDINGS: Grand Lisboa

SJM HOLDINGS: Grand Lisboa

Image: AP



SJM HOLDINGS: Casino Babylon

SJM HOLDINGS: Casino Babylon

It has 120 gaming machines and 45 gaming tables.Source: SJMHoldings

SJM HOLDINGS: Sofitel Macau at Ponte 16

SJM HOLDINGS: Sofitel Macau at Ponte 16

The 20-story hotel has over 400 rooms.Source: SJMHoldings

SJM HOLDINGS: Casino Lan Kwai Fong Macau

SJM HOLDINGS: Casino Lan Kwai Fong Macau

It has around 200 rooms and is within walking distance of many of the other casinos.Source: SJMHoldings

SJM HOLDINGS: Casino L’Arc Macau

SJM HOLDINGS: Casino L'Arc Macau

Image: larcmacau.com

It opened in 2010.

SJM HOLDINGS: Casino Macau Jockey Club

SJM HOLDINGS: Casino Macau Jockey Club

Image: AP

WYNN RESORTS: Wynn Macau has double the revenue of its Las Vegas parent company

WYNN RESORTS: Wynn Macau has double the revenue of its Las Vegas parent company

Image: AP

CEO: Steve Wynn Ticker: NASDAQ:WYNN

Macau Properties: Wynn Macau

The company’s high-quality management and its financial strength – its net debt is less than $13 million – sets it apart from its competitors. Wynn Resorts has been able to maintain a mid- to high-teen market share in Macau. It is expected to hold onto a 15% share despite facing more competition.

Expansion Plans: Wynn Resorts will be building a new property in the Macau, Wynn Kotai, which is expected to be completed by 2014-2015.

Wynn Resorts could reach a market cap of $345 million this year.

Source: Citi

WYNN RESORTS: Wynn Macau

WYNN RESORTS: Wynn Macau

Image: AP

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