The latest numbers for Macau have casino stocks with exposure to the region popping Wednesday as investors celebrated 29 consecutive months of revenue growth.
Gambling revenue in Macau, China’s lone legalized gaming hub, rose 14% in 2018, the second consecutive year of gains for the region.
December revenue rose 16.6% to $3.3 billion, exceeding the 10% to 15% increase analysts polled by Reuters were expecting. For the full year, Macau brought in $37.6 billion. December’s increase was the region’s biggest gain in four months.
Macau is back on the right track after a corruption crackdown by the Chinese government halted growth in the region. But the current trade war between the U.S. and China could maintain some pressure on the region.
Shares of Wynn Resorts Ltd. (WYNN) , which has the most exposure to Macau among American gaming companies, rose 6.7%. Las Vegas Sands Corp. (LVS) rose 4.5% and MGM Resorts International (MGM) gained 4.1%.
A new bridge connecting Macau and Hong Kong with other parts of Southern China that opened in October has helped boost visitation to Macau. The bridge is part of an economic integration project known as the Greater Bay Area.