International Game Technology reported 1Q14 results that were great, if you read the Las Vegas Review-Journal, and disappointing if you read Wall Street analysts. Profits were up 21% — but revenue growth slowed to 2%. Social gaming was credited with much of what revenue increase there was. Investors were also warned that the cost of the DoubleDown purchase would begin to be felt.
Domestic sales of machines grew but 7%, not impressive when compared to interactive revenue (up 41%) or DoubleDown Casino, soaring 57%. Visitation to the site is also up 17% from a year ago, as punters visited more often and played more. However, DoubleDown founders Greg Enell and Cooper DuBois have up and left IGT, causing even more agita among analysts, although they may have been merely serving out non-compete agreements. A company spokesman tried to assure all and sundry that “a strong senior leadership team is in place to continue the success of IGT’s DoubleDown.”
Deutsche Bank analyst Carlo Santarelli blamed “softer-than-expected product sales and gaming operations revenues, softer-than-expected gaming operations gross margins, and higher-than-expected adjusted … R&D expenses” for IGT’s miss of Strip expectations. Analyst consensus projected 30 cents of earnings per share. They got $0.25.
J.P. Morgan analyst Joseph Greff also lowered his price guidance, for very similar reasons. He warned against “stagnating North American slot 
replacements, lower year-over-year activity in new/expansion markets in the US, a no/negative growth US gross gaming revenue environment, and heightened competition in its core product sales and gaming operations segment.” He also faulted the company for “less than stellar” timing of its stock buybacks, tending to buy high or just before a share-price drop. He also quoted IGT as predicting cost reductions as a protective measure. He called the quarterly report “mostly negative.”
An unprecedented amount of lobbying is going into making Las Vegas the site of the 2016 GOP convention. Let’s be clear about this: It would be great for the local economy but it means courting a number of people for whom Sin City’s signature activities are anathema. Fortunately, casino-friendly Haley Barbour is on the steering committee that’s fielding the charm offensive from LV2016, as it’s called. A promotional video re-paints Las Vegas in family friendly terms (“531 places of worship”) — but who thought to include the infamous Harmon Hotel in the montage? It also touts our high ethnic-minority demographics, something of concern to the Grand Old Party as it strives to reinvent itself.
The effort, in which both Sheldon Adelson and Steve Wynn are involved, has 
indulged in some light trash-talking of other cities. (“Las Vegas can guarantee: There will be no hurricanes.”) Casino gambling? “It’s just an issue that is no longer on the table,” says Lt. Gov. Brian Krolicki (R). Infrastructurally, Vegas has everything the GOP needs … except a venue. All of our convention halls are too small, although you could at least do the mandatory balloon drop at Mandalay Bay Event Center. Alas, LV2016 is running into predictably shirty responses, like Iowa power broker Tamara Scott‘s “It’s Vegas — it’s known for anything but wholesome. I have reservations as soon as I hear the word ‘Vegas.’ ” This is one lobbying gig for which the mayoral showgirls will have to be left at home. Las Vegas is, in many respects, overdue for a presidential convention, but some people just don’t get it.
