Compared to Steve Wynn‘s gloom — and sapped stock price — about Las Vegas’ immediate economic prospects earlier this week, Boyd Gaming CEO Keith Smith was bullish on Sin City. And why not? Boyd reported profits of 31 cents a share, exponentially higher than Wall Street‘s dime-a-share consensus. Citing a 3% reduction in local cash flow, J.P. Morgan analyst Joseph Greff basically yawned at the results, maintaining his “neutral” rating on the stock. Not even above-expectation results at every outlying Boyd jurisdiction, including 12% at Borgata, was enough to move Greff.
Increased pedestrian traffic in Downtown Vegas, cheaper jet-fuel costs and increased Continued >>
“If you were planning to see the Duck Dynasty inspiration, Duck Commander Musical at the Rio, you best get the lead out. I’m hearing it’s operating on a wing and a prayer. It opened two weeks ago.” — Las Vegas Review-Journal columnist Norm Clarke. Call it ‘The Revenge of Longmire,’ sacrificed on the altar of the cretinous Robertson klan, er, clan.
“Macau giveth and Macau taketh away for Wynn Resorts.” With that sentence the Las Vegas Review-Journal‘s Richard Velotta pithily summarized the precipitous reliance that Wynn and other Macanese operators have on that unpredictable market. “Our hopes for a turnaround during Chinese New Year turned out to be incorrect,” said CEO Steve Wynn, announcing a first-quarter loss of $45 million. He added that he’d even be satisfied with a flat 2Q15 but isn’t anticipating one. Given the Macao-heavy tilt of Wynn Resorts’ balance sheet, a 2% improvement in Las Vegas doesn’t count for much against a 38% decline in China (with VIP play down 52%), where the forecast is clouded by social unrest and a continuing government campaign to root out graft.
Wynn blamed some of his problems on a “cloudier” atmosphere in Macao — and he wasn’t referring to the air pollution. Mentioning delays in a light-rail project that prompted a government official to publicly apologize, the CEO said, Continued >>