{"id":24649,"date":"2019-08-07T06:48:04","date_gmt":"2019-08-07T14:48:04","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=24649"},"modified":"2019-08-07T06:48:04","modified_gmt":"2019-08-07T14:48:04","slug":"wynn-station-disappoint-wall-street","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wynn-station-disappoint-wall-street\/","title":{"rendered":"Wynn, Station disappoint Wall Street"},"content":{"rendered":"

JP Morgan<\/strong> analyst Joseph Greff<\/strong> took a look at Wynn Resorts<\/strong>‘ second-quarter numbers and deemed them “a mixed bag.” The good news: Cash flow in Las Vegas<\/strong>, expected to be $109 million, manifested itself\u00a0at $137 million. The sorta-bad \"\"news: There was an EBITDA miss in Macao<\/strong>, where an expected $355 million materialized\u00a0at $343 million. VIP play was “soft” despite being 5% above expectations. But “the one sizable bright spot” was mass-market revenue, up 22%. As for the Las Vegas Strip<\/strong>, it “came in stronger, reflective of strong casino volumes and RevPAR [$300\/room], reflective of share gains there amidst a renewed focus on domestic casino growth.” Next revenue was expected to be $436 million but was $464 million. Table game wagering was up 9%, 28% higher than expected, while slot handle was up 4% instead of being (as anticipated) flat. Slot revenue was an impressive $339\/win\/slot\/day. Room revenues rose 8% on 90% occupancy and $333 ADRs, a 6.5% increase.<\/p>\n

Given its strong performance during a renovation, Greff predicted that Wynn Macau<\/strong> is “suggesting good growth potential into 2020 when new\/renovated amenities are rolled out.” Wynn had to write off $5 million in \"\"bad Chinese markers, so that dampened the Macanese results a bit. The company is optimistic, to say the least about Wynn Crystal Palace<\/strong>, scheduled to open in Macao<\/strong> in 2021. It’s investing $2 billion in the project and expects a 15%-20% return on investment when it hits the market. Property by property, Wynncore<\/strong> grossed $464 million, Encore Boston Harbor<\/strong> debuted with $19 million, Wynn Macau<\/strong> grossed $546.5 million and Wynn Palace<\/strong> logged $629 million. We’ve seen worse.<\/p>\n

*\u00a0With the exception of Rocky Gap Casino<\/strong>, which was flat last quarter at $18.5 million, Golden Entertainment<\/strong> continues to grow revenue. Net revenue at its Nevada<\/strong> casinos was $140 million, a 24% boost, and its Nevada slot routes ($71.5 million) and ones in Montana<\/strong> ($18 million) were modestly higher. Only the Nevada-casino comparison was spectacular but Golden continues to have a Midas touch.<\/p>\n

*\u00a0Station Casinos<\/strong> didn’t break out its 2Q19 numbers in any detail but Las Vegas operations were up, grossing $458 million for a healthy 16% gain. The other revenue stream, Native American casino management, was also up, \"\"11.5% to $23.5 million. Even so, Greff deemed the LV locals results as “generally soft,” partly due to slower-than-expected revenue growth at the Palms<\/strong>. That downgrade came in spite of “a lot of positive economic characteristics (jobs and wage growth, LV development on the come).” Greff projects only $45 million of cash flow from the Palms, once projected for $70 million, of which he says “ouch.” Put another way, that’s a 4.5% return on investment. Even cash flow derived from non-Palms locals play was only up 1%, with Greff adding that Station “bought” business through its Palms nightclubs and F&B amenities, which mitigates “encouraging” numbers in that sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

JP Morgan analyst Joseph Greff took a look at Wynn Resorts‘ second-quarter numbers and deemed them “a mixed bag.” The good news: Cash flow in Las Vegas, expected to be $109 million, manifested itself\u00a0at $137 million. The sorta-bad news: There … 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":[14,97,62,72,112,159,92,57,9,20,38,233],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24649"}],"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=24649"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24649\/revisions"}],"predecessor-version":[{"id":24650,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24649\/revisions\/24650"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=24649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=24649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=24649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}