Although Wynn Resorts reported $1.6 billion in revenue for 1Q19, Credit Suisse analyst Ben Combes called the numbers “disappointing … We remain Neutral 
on WYNN, given macro uncertainty and policy risk in Macau and China. Our forward macro indicators are suggesting Macau revenue growth could decelerate further over the next 9-12 months, but could rebound early next year. The Las Vegas [first-half] outlook is strong, with our forward room rate, convention attendance and air capacity all positive.”
What hurt Wynn? Poor baccarat revenues in Las Vegas (a recurring theme), plus cash flow that came in well below expectations. A 2% drop in room revenue when the rest of the Strip was up almost 5% didn’t help either. Combes evidently doesn’t buy into the talk that a Crown Resorts takeover is still being pursued quietly, and he predicts a better cash-flow result when the convention center and other construction activity wrap by year’s end. VIP play, Wynn’s key strength in Macao, is down but better mass-market performance is compensating.
* No company on the Las Vegas Strip is so exposed to the vicissitudes of that market as MGM Resorts International. This week, citing trends both in 
baccarat and room rates downward, JP Morgan analysts modified their cash flow projections for the company. Wrote Joseph Greff, “We are trimming our 3Q19 estimate to $459m (implying ~10% y/y growth given the easy growth comparison versus last year’s soft summer results), down from $497m. Our 4Q19 estimate remains $426m, which implies 6.4% y/y growth.” The news isn’t all bad: Greff foresees 5% growth across the span of 2020.
* At least Scientific Games pleased Wall Street, its cash flow coming in 2% ahead of expectations, driven by a 7% bump in lottery revenues. A $301 million windfall from the SciPlay IPO was welcomed, as it will be used to pay down SGMS’ significant leverage. Not only were two new lottery contracts inked, but hardware sales helped drive the positive result, suggesting a more robust replacement cycle.
* Indiana casinos had a cruel April, down 6% to $179 million. Hollywood Lawrenceburg beat the average, down only 2% to $13.5 million, while Belterra 
dove 10% to $8.5 million. Horseshoe Southern Indiana plummeted 19% to $17 million (are there flood-closure issues Wall Street isn’t sharing? Some major access issues went unmentioned.) and the saving grace was Caesars Entertainment‘s racinos. Hoosier Downs was flat at $16 million and Indiana Downs grossed $22 million for a 5% gain. Horseshoe Hammond sank 8% to $33 million, Ameristar East Chicago slid 9% to $19.5 million, Blue Chip was 3% off, for $12.5 million, and since it was the casino likeliest to be impaired by tribal Four Winds we have to say things could be a lot worse.
The soon-to-be-obsolete Majestic Star casinos had a mixed result, with the old Don Barden vessel 5% lower in the water for $8.5 million and the ex-Donald Trump one riding 2.5% higher to gross $5.5 million. Tropicana Evansville dropped 11% to $11.5 million, Rising Sun got hammered, down 18.5% for a $3.5 million take and French Lick Casino gained 1.5% to finish near $8 million for the month.
* A dedicated fan of the Las Vegas Golden Knights represented their cause all the way to Vatican City. His Holiness, Pope Francis (our favorite pope since John XXIII) received a Golden Knights jersey was clearly delighted with the present. It’s nice to have a pope in the Golden Knights’s corner.
