“Loveman ‘fascinated’ by complexities of High Roller,” read one of today’s headlines. Perhaps he ought to be more fascinated by the complexities of Caesars Entertainment‘s bankruptcy, of which he is the undisputed architect. The company announced quarterly earnings yesterday, losing a mere billion dollars compared to last year’s $1.76 billion, helped by $9 million in unspecified cost cuts. The blow was softened by a 6% increase in revenue, though not much of that was attributable to gambling win, up 2%. Dining and drinking (+9%) and hotel rooms (+5%) were stronger drivers of financial performance. If there’s one thing Caesars has been successful at, it’s been in rebranding the “Four Corners” of the Las Vegas Strip as a dining/shopping/sightseeing destination, as the quarterly figures imply.
Caesars also credited “continuing strength in the company’s interactive business, new Continued >>
Whenever you think the Revel saga is done, a new complexity arises. Glenn Straub‘s $82 million purchase is set to be ruled upon in bankruptcy court tomorrow. But, slipping over the transom at the last minute come Leo Pustilnikov and fellow developer Isek Shomof, brandishing $80 million. While Straub has placed $82 million in escrow, Pustilnikov and Shomof are making “an offer of funds.” Ooooooh, an offer of funds! How exciting. The duo argues that their seemingly lowball offer outdoes Straub’s because $10 million of his $82 million in cash comes from a forfeited deposit on his (since superseded) $95 million bid. They must be mighty enamored of Revel, since they’re making a purchase offer without ever having seen the place.
Shomof, “a prominent redeveloper of older buildings in Continued >>
Sheldon Adelson can call Macao‘s doldrums “cyclical” until he’s blue in the face but there’s no mistaking that the gambling enclave is having serious problems. Actually, that’s a bit of an understatement when February revenue falls 49%. VIP play is especially hard to find, down 60% in sheer volume and 56.5% in revenue. Las Vegas Sands took an especially heavy hit, its VIP revenue down 66%. MGM Grand Paradise took a 59% haircut and Wynn Macau was walloped worst of all, its VIP revenue falling 70%. “During a recent visit … to four of the city’s glitziest casinos, VIP rooms were mostly desolate,” reports Reuters.
You can get on a conference call with Wall Street analysts and Continued >>