Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
Macau gaming
“November’s gaming revenue was sequentially slower but in-line with expectations given seasonality and the Macau Grand Prix,” wrote Jefferies equity analyst David Katz in a Dec. 1 note. “We believe the spike in influenza cases in China is adding to the outlook concerns, similar to China macro concerns, but no evident impact at the moment on the Macau market. We expect the gross gaming revenue and earnings recovery could remain disconnected from valuations until economic growth concerns and influenza cases ease in China.”
Las Vegas Strip gaming
Barry Jonas, Truist Securities analyst, examined gaming on the Las Vegas Strip in a Nov. 30 note. Jonas wrote that win on the Strip “rose +1% year-over year, though higher baccarat hold again boosted results as normalized/ex-baccarat fell -1%/-3%. Reported visitation trends were largely flat year-over-year, with revenue per available room/average daily rate (ADR) trending positively.
“Our proprietary room survey showed strong ADRs in November, though showed signs of deceleration in December and into January. Net-net, we think results are solid, though all eyes will be on next month’s report for a glimpse into the inaugural F1 race’s impact. We’re still positive on the Strip heading into year-end, with New Year’s Eve and Super Bowl on deck and the union renewal overhang now resolved.”
Las Vegas October visitor statistics
According to J. P. Morgan analyst Joseph Greff in a Nov. 20 note, the Las Vegas Convention and Visitors Authority reported that “visitation for (October) was 3.630 million, down 0.2% year-over-year and coming in 1% below October 2019 levels (but up 3 points sequentially relative to 2019). Citywide occupancy was 87.7%, down 230 basis points versus October 2019, on a room inventory base that was 2% higher than in 2019, reflecting 152,289 open rooms. Convention attendance was 640,600 attendees in October, up 2% year over year (up 22% versus 2019).”
