Meet $2 Million Mike; The Big Easier

Casino podcasts (MGM Resorts International‘s in particular) have been razzed in the past for a lack of content. No such gripes about Las Vegas Sands‘ latest offering, 10 minutes in the company of COO Michael Leven (who derives his nickname from being paid a higher base salary than Caesars Entertainment CEO Gary Loveman and as much as MGM CEO Jim Murren). The generic-sounding — and distracting — background noise sounds like it was either piped in afterward or the interview was conducted at Tao Beach, probably the former.

Bullet points include a new wait-and-see attitude toward Japan and higher-priority status for Hanoi and South Korea. The COO also offers the rationale for Sands’ proposed $21 billion investment in Spain, particularly in Barcelona. Leven takes a more conciliatory line toward the current Spanish government, previously dissed by CEO Sheldon Adelson. Leven seems to have given up on replicating Venelazzo‘s convention success in Asia (by which he surely means Macao, not Singapore). Despite much-improved numbers, Pennsylvania is not discussed, nor is there any speculation on Florida — or even on when the St(ump) Regis will be resumed. Taking a swipe at his customer base, he ends with kvetch monologue about how awful social media are, that we live in “the highest-complaining society, unsatisfied society in the history of mankind, perhaps since the cavemen,” and patrons who Tweet their displeasure give him hurty feelings and jeopardize his company.

Random customer complaints on the Internet are going to topple Adelson Inc.? Have a little faith, Mike!

Speaking of conventions, in early 2011 meeting attendance in Las Vegas is up 11%. That, in turn, is projected by J.P. Morgan analysts to drive approximately a 1% net gain in airline capacity coming into Sin City (last year saw almost a 3% decline). It would still leave McCarran International Airport a long way down — 10%+, by my reckoning — from 2008 levels but we’re not going to get out of such a deep hole in one or two great leaps. Slow and steady wins this race. Besides, Vegas has finally learned to love conventioneers, a change of heart that should be applauded.

Morgan analysts are also liking what they see in advance of Pinnacle Entertainment‘s earnings call. CEO Anthony Sanfilippo‘s ship-trimming regime is producing better-than-expected cash flow, partly through reduced comping and partly via greater stability in Pinnacle’s mid-American markets. If there’s any downside, it’s that the cities in which Pinnacle wishes to liquidate — Reno and Atlantic City — aren’t ones where buyers are knocking down your door with high-value offers. However, there’s still that nascent marketing alliance with Wynn Resorts, something which should solidify Pinnacle’s reputation as the creme de la creme of riverboat operators.

Pinnacle’s prime market, of course, is Louisiana (57% of property-level cash flow) and the news is good down there. Pelican State casinos were up 4% last month (five months of growth out of the last six), with New Orleans (+11%) and Baton Rouge (+7%) taking the lead. Pinnacle’s L’Auberge du Lac held steady while Boomtown New Orleans (+10%) and Boomtown Bossier (+3%) drove company growth statewide. Boyd Gaming, by contrast, is having a flat 2011, meeting and exceeding expectations only on its Treasure Chest riverboat.

Returns at Isle of Capri Casinos‘ eponymous Lake Charles riverboat are so negligible ($4 million in the first quarter, +10.5%), you have to wonder why Isle bothers, compared to nearby Isle Grand Palais‘ $31 million (-2%) over the same period. The state’s dollar and percentage-gain leader was Harrah’s New Orleans, whose $34 million (+14%) outweighed weak performance at other Caesars-owned properties. The Bossier City market was flat, with Penn National Gaming‘s Hollywood-branded boat (+12%) eating almost everyone else’s lunch. On the whole, a good month to be in Louisiana and an especially good month to be Pinnacle, revenue-growth leader in the state.