NEW YORK, NY / ACCESSWIRE / January 30, 2017 / Casino stocks could look to benefit from the recent surge in gaming revenues from Macau. Data from Macau's Gaming Inspection and Coordination Bureau show that gross gaming revenues rose 8 percent year-over-year to 19.8 billion patacas ($2.48 billion) in December, this follows a 14.4 percent year-over-year increase in November. Total casino revenues for the full year 2016 declined 3.3 percent to 223.2 billion patacas, a substantial improvement from the 34.3 percent decline experienced in 2015. That number is expected to continue to improve as gambling revenues are forecasted to grow by 7 percent in 2017, according to analysts surveyed by Bloomberg.
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Additionally, casino operators will now have an opportunity for new revenues stream in Japan. After many delays, the Japanese government on December 15th, 2016 passed a law legalizing casinos. The opening of just two casinos initially could see Japan's gaming revenues total over $10 billion, with that number eventually growing to $25 billion, according to a recent report from CLSA.
Las Vegas Sands Corp. (NYSE: LVS)
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Las Vegas Sands' shares gained 1.74 percent to close at $53.32 a share Friday. The stock traded between $52.70 and $53.78 on volume of 8.06 million shares traded. The company reported a GAAP net income of $509 million or $0.64 a share for the fourth quarter of 2016, an increase of 9.2 percent when compared to a GAAP net income of $466 million or $0.59 a share in the fourth quarter of 2015. Net revenues were $3.08 billion for the fourth quarter of 2016, an increase of 7.4 percent when compared to a year ago. Consensus analysts' estimates have called for GAAP net income of $0.66 per share on revenue of $3.11 billion, according to Thomson Reuters I/B/E/S.
Wynn Resorts, Limited (NASDAQ: WYNN)
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Wynn Resorts' shares spiked 7.94 percent to close at $103.08 a share Friday. The stock traded between $101.00 and $104.05 on volume of 7.97 million shares traded. The company reported net revenues were $1.30 billion for the fourth quarter of 2016, an increase of 37.3 percent when compared to $946.9 million in the fourth quarter of 2015. The jump in revenues was primarily attributed to the company's Macau property, Wynn Palace which was opened on August 22nd. The Wynn Palace provided net revenues of $418.7 million in the fourth quarter of 2016, revenue from its casino operations were $373.2 million. Reported adjusted earnings were $51.0 million or $0.50 per share, against adjusted earnings of $104.1 million or $1.03 per share in same quarter last year. Analysts' expectations had called for adjusted earnings of $0.85 a share on revenues of $1.26 billion, according to Thomson Reuters.