Bernstein Checks Indicate Weak Start For Macau Gaming In June

Berstein analyst Vitaly Umansky offered comments on the Macau gaming market Tuesday morning. Umansky's recent checks suggested a "weak start" to gross gaming revenue within the region for the month of June.

Umansky modeled for Macau gross gaming revenue of about MOP2.5B during last week, a number which pointed to an average daily rate of MOP510M. Using an average daily rate between MOP530M-MOP570M for the remainder of June, the Bernstein analyst said gross gaming revenue for the entire month would come in down 3-9 percent on a year-over-year basis.

"As we reported in our latest findings from Macau, we expect the government to continue tightening regulatory scrutiny of junket operators and the VIP gaming market. As a result, government actions are likely to weigh on VIP gaming in the near-term as well as driving consolidation amongst junket operators as smaller junkets are forced out of the market given higher costs of compliance," according to Umansky.

Below is Umansky's coverage universe for Macau gaming:

• Sands China - Outperform;
• Wynn Macau - Outperform;
• Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL) - Outperform;
• MGM China - Outperform;
• Galaxy Entertainment - Outperform; and,
• SJM - Market Perform

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