Chips down for Macau casinos with first decline in gaming revenue in more than a decade
Melco Crown Entertainment says it will delist from Hong Kong stock exchange as gaming hub suffers first revenue drop in over a decade
Casino operator Melco Crown Entertainment yesterday announced plans to delist from the Hong Kong Stock Exchange, after Macau reported its first decline in gaming revenue in more than a decade.
Melco submitted an application to the Hong Kong Stock Exchange to voluntarily delist from the main board, the company said, adding that it intended to retain the listing of its American Depositary Receipts (ADRs) on Nasdaq.
Casino revenue in Macau fell 2.6 per cent in 2014 to 351.5 billion patacas (HK$332.7 billion), after a record 30.4 per cent monthly decline in December, according to the city's Gaming Inspection and Coordination Bureau.
Last year's drop in revenue - which came amid an anti-graft drive and a slowing economy on the mainland - was the first since the territory liberalised the gaming industry in 2001.
Last month's takings - 23.3 million patacas - were the smallest in the year, marking the seventh straight month of decline.
"We forecast a 9 per cent gaming revenue decline in 2015," said CLSA analyst Richard Huang. "Business will remain tough in 2015, especially in the first half."
