Caught between harsh weather and a tighter competitive squeeze, Penn National Gaming posted 4Q13 revenues that were 13% down from last year. The $645 million loss drew a surprisingly muted reaction from gaming analysts. The company is already drastically reducing revenue and EBITDA expectations for 1Q14. Rent charged to Penn’s REIT parent, Gaming & Leisure Properties, pretty much sank the company’s fourth quarter, with other, aforementioned factors applying the coup de grace. Some of the loss was attributable to stock-based compensation, a bit of self-dealing that Penn could do very well without right now.
Penn execs talked up new projects, including two Ohio racinos and a tribal casino near San Diego, as well as the completion of the overhaul of Casino Hollywood St. Louis (formerly Harrah’s Maryland Heights). If chosen for a slot parlor in Massachusetts, Penn predicts it can have a temporary facility up by midsummer or soon afterward. Debt was low, at $1 billion. Although Penn missed revenue estimates, analysts dismissed that as “roughly in line” with revenue projections. Deutsche Bank analyst Carlo Santarelli, for one, had so aggressively lowballed his projections that one would think the quarter an unalloyed triumph for Penn. Credit Penn with a brilliant job of managing expectations.
It took five years to bring high roller Semion Kronenfeld to trial but it’s finally going to happen. Kronienfeld’s defense is going to be that casino promotions and other enticements are to blame for his debts. He’s being brought to justice on defaulted markers of $5 million at Green Valley Ranch and $8 million at the Venetian. Yup, it’s all Sheldon Adelson‘s fault. (Just kidding.)
Fold ’em. That’s what Virginia state Sen. Louise Lucas (D) decided to do with a casino bill in the Lege, despite having found a sponsor in the House, too. Lucas’ idea is to put a casino in the Portsmouth area, enabling the state to scrap much-despised tolls in Hampton Roads. Too bad: It was a good idea.
Louisiana political campaigns have been very lucrative for a few casinos — and not the ones you think. Obscure Paragon Casino & Resort hauled in the most lucre.
They left their heart in San Francisco and their wallets in Vegas. Sin City finishes second to The City as a romantic destination. Maybe we ought to work on that.
Last month in Macao … three concessionaires controlled two-thirds of the market share. SJM Holdings (23%), Sands China (22%) and Galaxy Entertainment Group (20%) were all tops. Wynn Resorts finished in distant sixth place, garnering only 9% of market share. Of course, if Steve Wynn were here, he’d contend it’s the right 9% — and who can contradict him?
