{"id":15979,"date":"2015-05-04T10:17:23","date_gmt":"2015-05-04T18:17:23","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=15979"},"modified":"2015-05-04T10:30:38","modified_gmt":"2015-05-04T18:30:38","slug":"mgm-the-lion-meows-glpi-still-hungry","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/mgm-the-lion-meows-glpi-still-hungry\/","title":{"rendered":"MGM: The lion meows; GLPI: Still hungry"},"content":{"rendered":"

MGM Resorts International<\/strong> needed to increase net revenue this past quarter by 2% to meet Wall Street<\/strong> forecasts and offset inflation. Instead, revenue stayed flat and the Leo the \"MGM<\/a>Lion came in $33 million on cash-flow forecasts and down $12 million on MGM Macau<\/strong> net revenues.\u00a0Among the bright spots were MGM’s low-end Las Vegas Strip<\/strong> properties, whose revenue per available room rose 4%. Not so good were “weak” table hold on the Strip and Macao<\/strong> cash flow that didn’t even match the most recently adjusted forecasts. VIP player volume in the Chinese enclave was off by a staggering 51%.<\/p>\n

While Deutsche Bank<\/strong>\u00a0had expected Strip net revenue of $1.33 billion, it had to settle for $1.29 billion, or a 1% miss. Not even the infusion of a $160 million lawsuit settlement on CityCenter<\/strong> could diffuse Wall Street’s disappointment. While MGM had hoped for as much as 3% RevPAR growth on the Strip, it had to settle for 1%. The softness was mostly felt at the high-end hotels. “On today\u2019s …\u00a0conference call, we\u2019d expect MGM to guide to 3 to 5% RevPAR growth, highlight that its lower-end segment is improving, the domestic player is coming back (to a degree),” wrote J.P. Morgan<\/strong>‘s Joseph Greff<\/strong>. Macao cash flow was a particular disappointment, being $44 million off Greff’s forecast.<\/p>\n

And, oh yes, there was gambling. Table hold was a bit lower than normal but slot win was up 5%. It’s nice to know that the bread-and-butter players came through for MGM in the crunch.<\/p>\n

* The talks of a REIT takeover of Pinnacle Entertainment<\/strong> by Gaming & Leisure Properties<\/strong> may be going better than previously thought<\/a>. A statement released today by GLPI reads, \u201cThey [Pinnacle] have provided tax basis information on their assets which we \"pinnacle_logo_lr\"<\/a>have analyzed although there has been no independent review or diligence on this information. We have been in very productive, substantive discussions with them in an effort to come to agreement on terms for the transaction we have proposed. We are pleased with the progress of those discussions and will update everyone as soon as we have something definitive to report.\u201d<\/p>\n

GLPI management patted \u201cvery cordial and professional\u201d\u00a0Pinnacle on the head, complimenting its\u00a0\u201cexcellent job over the last several years with its operations …\u00a0we are impressed with the results they continue to achieve.\u201d<\/p>\n

Deutsche Bank’s Carlo Santarelli<\/strong> is bullish on GLPI, citing “relatively stable cash flows,” healthy dividends, growth opportunities and a management focused on ROI. He added that GLPI leadership “has not given a lot of thought to non-gaming opportunities despite having looked at a couple.” Also, contrary to Penn National Gaming<\/strong>‘s assertions, GLPI wants to get in on the Tropicana Las Vegas<\/strong> acquisition, despite low cash-flow levels.<\/p>\n

Operating results at L’Auberge Baton Rouge<\/strong> and Hollywood Casino Perryville<\/strong> were characterized as stable. GLPI has the cash on hand to pay a dividend but won’t do so until next quarter, when the Pinnacle business is expected to no longer be hanging fire.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International needed to increase net revenue this past quarter by 2% to meet Wall Street forecasts and offset inflation. Instead, revenue stayed flat and the Leo the Lion came in $33 million on cash-flow forecasts and down $12 … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[56,14,190,84,62,72,11,69,30,9,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15979"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=15979"}],"version-history":[{"count":2,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15979\/revisions"}],"predecessor-version":[{"id":15982,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15979\/revisions\/15982"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=15979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=15979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=15979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}