Earnings+More - LVS bullish on Macau
LVS bullish on MacauLas Vegas Sands’ eastern promise, Rank’s season to be cheerful, Lottomatica pre-close statement +MoreGood morning. On today’s agenda:
Daddy’s gonna tell you no lie. LVS sees Macau promiseLas Vegas Sands remains bullish on Macau with “the right customers” coming through the door. Macau ramp on: Despite the Macau adj. EBITDA loss of $51m and FY22 operating losses of $792m (up 15%), CEO Rob Goldstein said: “If you’re looking for a negative comment on Macau, you’re in the wrong earnings call.”
Planes, trains and automobiles: The ease with which visitors could access Macau was another factor that explained why the region was showing strong signs of recovery. Grant Chum, CEO of Sands China, said 40% of LVS’s Macau visitors had come from Hong Kong vs. 30% from mainland China since reopening on 8 January.
No small time: Goldstein noted the group was looking at making a $4bn-$5bn investment in New York should it win its bid to build a downstate casino in Long Island. He said an LVS downstate casino “will be a full-blown resort with entertainment, restaurants, theaters – no small-time investment”.
** SPONSOR’S MESSAGE ** Tried, tested and proven over a decade in the highly-regulated US market, and continuing to expand across Europe, Latin America, Asia and Africa. GeoComply harnesses the power of its market-leading geolocation technology to protect against fraud, including fake account creations, bonus abuse, account takeovers, stolen identities, money laundering, and more. Visit geocomply.com. Rank’s happy XmasThe casino to bingo group saw strong trading over the Christmas and new year period. Vitality: The decent current trading came even as Rank reported half-year profits diving 83% to £4.2m. John O’Reilly, CEO, said the downturn in operating profits was “wholly” down to the performance of the Grosvenor casinos business, the health of which is “vital” to the group.
The ice storm: In bingo, O’Reilly noted the decline among its older cohorts. “The land-based bingo business is under considerable pressure,” he said. “Snow and ice is not good for bingo.” LFL NGR was down 20% on pre-pandemic levels in H12019/20.
Patient: On the UK government’s upcoming gambling White Paper, O’Reilly said the conclusion of the process “can’t come soon enough”. “I do expect publication in the coming week and then we need good progress on the secondary legislation,” he added.
Earnings in briefPlaytech: The company said in a brief trading update that the business has performed well in H2 and it expected EBITDA for the year to come in up 26% at £400m. FY results will be published on March 23. Lottomatica: The acquisition of Betflag enabled Lottomatica to reach record Q4 handle and 11-15% EBITDA growth. Revenues increased 7% to €377m, while EBITDA is forecast to reach €115m-€119m.
Sportech: In its pre-close update Sportech said it expects FY22 adj. EBITDA to come in “ahead of market consensus”, with sports betting and food and beverage revenues performing strongly and operational costs reduced significantly. FY22 results will be published in April. Monte-Carlo Casino parent company Société des Bains de Mer saw revenues for the nine-month period to the end of December rise 27% to €556.5m. The increase was achieved despite Q3 revenues falling 18.5% to €43.6m. Analyst takesMacquarie estimates that NFL hold came in at an above-average 11% for the week ending January 22. The divisional playoff games came in “under their respective total betting lines”, which generated strong margins on “game outcomes and single-game parlay bets”.
DatalinesMississippi casino GGR was down 5.5% to $211.5m in December, while sports-betting GGR was up 248.8% to $11.3m with handle rising 30.8% to $74.3m. Nebraska casino GGR increased 5.7% to $4.3m, Virginia casino GGR rose ~18% to total $53.9m, while New Hampshire sports-betting GGR increased 225% to $7.9m, with retail betting GGR rising 96% to $390k. NewslinesThe UK Gambling Commission has approved Allwyn’s £100m acquisition of Camelot UK Lotteries Limited from the Ontario Teachers’ Pension Plan Board. AGS will supply its range of online slots to Caesars’ Sportsbook in New Jersey and Pennsylvania, while BetMGM has gone live with White Hat Gaming’s online slots suite in Pennsylvania. Skywind-owned mobile gaming operator In Touch Games has been fined £6.1m by the UK Gambling Commission for social responsibility and money laundering failings, the third time the company has been fined in the past four years. Diary date: XLMedia will hold an investor day on February 1. In Compliance+MoreThe second issue of Compliance+More was sent earlier this morning. In this issue:
What we’re readingSkating on thin ice? NHL stars and gambling endorsements under scrutiny. Calendar
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