{"id":25300,"date":"2019-11-07T08:20:05","date_gmt":"2019-11-07T16:20:05","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=25300"},"modified":"2019-11-07T08:20:05","modified_gmt":"2019-11-07T16:20:05","slug":"wynn-misses-estimates-sports-betting-wins-in-colorado","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wynn-misses-estimates-sports-betting-wins-in-colorado\/","title":{"rendered":"Wynn misses estimates; Sports betting wins in Colorado"},"content":{"rendered":"

Wynn Resorts<\/strong> reported 3Q19 earnings and the headline was Macao<\/strong>. As J.P. Morgan<\/strong> analyst Joseph Greff<\/strong> wrote, “For the first time in a while, we feel that the tough Macau VIP segment is stabilizing\/not getting worse, \"\"and mass growth there remains in attractive growth territory.” A renovation of part of Wynn Macau<\/strong>‘s casino floor is expected to improve results in late 2019. On the Las Vegas<\/strong> front, the opening of the new convention center is also expected to move the needle and “allow it to grow high-margin room revenues and capture more share of the group segment.” The reopening of the golf course is also anticipated to help drive table-game revenues.<\/p>\n

“In Boston<\/strong>, which we view as a tertiary driver for the stock behind Macau and Las Vegas, the five month old Encore Boston Harbor<\/strong> is experiencing a slower than originally anticipated ramp on slot profitability, but other segments at the property are doing as expected,” Greff continued. Wynn’s Macanese cash flow of $323 million came up short of Greff’s predicted $330 million but easily exceeded Wall Street<\/strong>‘s consensus $310 million. Its market share in table games held steady at 14%, despite new competition from MGM Mansions<\/strong> and Morpheus Tower<\/strong>. By contrast, Encore Boston Harbor only delivered $8 million in cash flow, which implies a poor return on investment going forward.<\/p>\n

VIP-derived revenues in Macao were down 41% but there was consolation in the form of mass-market slot winnings, up 8%. Wynncore<\/strong>, which had net revenues of $400 million, badly missed Greff’s cash-flow project, \"\"delivering $88 million. Bad-debt write-offs of $4.5 million played a role. Wynncore realized $86 million in table game revenues and $58 million from slots. Room revenues were up 5%, with renovations scheduled for 2020. Wynn “continues to refine marketing at its new Encore Boston Harbor property, in efforts to make the property more local,” including introducing a tiered loyalty card. As for Macao capital projects, Crystal Palace<\/strong>‘s first phase, costing $2 billion, won’t break ground until late 2021. Regarding\u00a0its plans for the old New Frontier<\/strong> site, management remains tacit.<\/p>\n

Credit Suisse<\/strong> analyst Ben Combes<\/strong> was far less sanguine than Greff, pointing to a series of revenue missing and adding, “We remain neutral on WYNN, given macro uncertainty, current [Hong Kong<\/strong>]\u00a0protests and \"\"policy risk in Macau and China<\/strong>.” He added, “The Las Vegas 4Q outlook is strong, with our forward room rate survey, forward air capacity and convention attendance all positive.” He added that room-revenue improvement at Wynncore lagged the rest of the Strip’s 5%. Other priorities for the company include launching a New Jersey<\/strong> sports book and one in Massachusetts<\/strong>, should the Bay State legalize it.<\/p>\n

In other Wynn metrics, Wynncore room rates ran to $306 at 88% occupancy. Table game wagering was flat but slot coin-in increased 9% for a win\/slot\/day of $335, well above industry average. Wynncore revenues were $399.5 million, while Wynn Macau took in $474 million (falling 18%) and Wynn Palace<\/strong> grossed $598 million, also down 18%. As for Encore Boston Harbor, it took in $175 million, with no year\/year comparison available, for obvious reasons. Wynn curbed corporate expenses by 18% for a $26 million tally.<\/p>\n

* Proposition DD<\/strong>, legalizing sports betting in Colorado<\/strong>, finally squeaked across the finish line<\/a>, winning by 22,000 votes out of 1.4 million ballots cast. The new law will tax sports betting revenue at 10% and allow \"\"for mobile wagering. The high level of dissent is attributed to disingenuous opposition that painted Proposition DD as a tax increase. Winners include Full House Resorts<\/strong>, which was banking on the legalization of sports wagers. Said House Minority Leader Patrick Neville<\/strong> (R),\u00a0\u201cBlack markets aren\u2019t conservative and they aren\u2019t good for Colorado.\u00a0Bringing sports betting into the daylight, regulating it and leveraging it for the benefit of our water future is a common-sense approach.\u201d Tax proceeds from sports betting will go toward to relief of water shortfalls.<\/p>\n

* A Korean scandal<\/a> suggests that Mohegan Sun<\/strong>‘s decision to include a K-Pop<\/strong> theme park in Inspire<\/strong> could be a double-edged sword.<\/p>\n

* Make tracks to Carnegie Deli<\/strong> while you still can. The restaurant at The Mirage<\/strong> is shutting its doors<\/a> next February. No replacement has been named, although fast food seems likely.<\/p>\n","protected":false},"excerpt":{"rendered":"

Wynn Resorts reported 3Q19 earnings and the headline was Macao. As J.P. Morgan analyst Joseph Greff wrote, “For the first time in a while, we feel that the tough Macau VIP segment is stabilizing\/not getting worse, and mass growth 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":[275,27,18,26,198,62,112,222,245,167,248,187,243,38,233],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25300"}],"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=25300"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25300\/revisions"}],"predecessor-version":[{"id":25301,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25300\/revisions\/25301"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=25300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=25300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=25300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}