Good morning. On the pod this week, after the news from FuboTV on the shuttering of its sports-betting operation, Scott & Jake discuss the prospects of more exits to come in the US. As was clear from this month’s Deal Talk, the current NFL season might be the last for a number of the smaller players in the market.

Meanwhile, 888’s third-quarter trading statement made it plain that the heavy weather for UK and European operators is far from over, although a positive share price reaction would suggest investors believe that for 888, at least, things can only get better.

But first, we have Las Vegas Sands’ Q3 earnings where Singapore continues to shine while Macau remains “subdued”, and Monarch Casino and Resorts where the ramp-up in Black Hawk helped to to smash its previous EBITDA record.

When are you going to come down, when are you going to land?

Macau hobbles LVS

Singapore provides succor as revenues rise 17% YoY to $1.01bn and adj. EBITDA is up over 300% to $191m.

Hobbled: The Marina Bay Sands property saw revenue rise by over 200% in Q3 to $756m but Macau revenues fell by 58.9% to $250m while property level EBITDA fell into loss-making territory once more at -$150m vs. a profit in Q321.

• Asia misfiring: CEO Rob Goldstein said LVS would “need to see China return” for the company to achieve its long-term aims but that even short-term predictions around Macau were difficult.

• “It’s been stop-and-start for so long so it’s not right for us to pontificate on EBITDA,” he added. “It’s difficult to tell you whether Q4 will be positive or not.”

• Asked what the shape of the Macau business might be when it returns, COO at Sands China Grant Chum said the situation was “volatile because volumes are so thin”.

• “I don’t think looking at the prior quarters is meaningful right now,” Chum added. “But we expect a strong comeback of premium mass and mass.”

• Goldstein was far more positive on Singapore, saying the long-term aim was revenues of $2bn a year. 

• “Can we get you a very fat return (in Singapore)? Oh yeah,” he commented. 

Jack-in-a-box: The team at Macquarie noted that the performance in Singapore was achieved with only 56% air capacity at present, suggesting evidence of “strong pent-up demand”. The team added that Macau is like a “coiled spring”.

• Stop me if you think that you’ve heard this one before: Jefferies add that Singapore should provide the template for a Macau recovery.

• About last night: Deutsche Bank, meanwhile, reach into the Eagles back catalog to pull out a lyric from Don Henley and suggested this call might be the “last worthless evening that you'll have to spend".

• This should be the last quarter where Macau is an earnings call “afterthought”, they added.

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Monarch breaks records

The Reno, Nevada and Black Hawk, Colorado, operator saw revenues rise 19.8% YoY while adj. EBITDA was up 28.3% to a new all-time record.

Get the message: Analysts at Truist suggested Monarch had failed to “get the recession memo” after producing record-breaking operating profits which in part the company ascribed to continued gains in market share in Black Hawk. Adj. EBITDA margins also again hit record levels at 38.7%.

• CEO John Farahi said Black Hawk continued to gain more share of the “most valuable” customers adding that Monarch saw a “long runway” ahead in that market.

• The team at Macquarie said that “clearly, the ramp at Black Hawk has been more robust and rapid” than originally anticipated.

Pod - further reading

Everything must go: This week, FuboTV said it was shuttering its sports-betting operations, news which chimed with our latest edition of Deal Talk that discussed the potential for further market exits in the US.

Share Earnings+More

Eightball: 888 issued a Q3 trading statement and updated the market on its debt situation where the headline was that interest on its £1.81bn of debt will rise to ~£170m in 2023 given the likely direction of rate rises.

In tomorrow’s weekend edition:

• Datalines from Pennsylvania and Michigan.

• The highlights from Entain’s Sustain conference this week.

• The analysts at CBRE assess their takeaways from G2E.

What we’re reading

Not today, colonizers: the failure to understand the power of the tribes in California.

Rhetorical question: Does Times Square have space for a casino?

The pod on Spotify and Podbean

Listen or download the E+M pod on Spotify and Podbean.

E+M Podcast#19 scott4v Episode

Calendar

• Oct 25: Boyd Gaming

• Oct 26: Betsson, Kambi, Churchill Downs

• Oct 27: Evolution, Kindred, Red Rock, VICI

Contact

• Scott Longley scott@clearconcisemedia.com

• Jake Pollard jake@openmediaservices.com