Earnings+More - MGM: it’s a ‘no’ on Entain
MGM: it’s a ‘no’ on EntainMGM says it’s time to end the Entain M&A speculation, Wynn Resorts says it is seeing a non-junket VIP return +MoreGood morning. On today’s agenda:
I was so upset that I cried all the way to the chip shop. MGM kills Entain speculationCEO Bill Hornbuckle says it is “time to be definitive” as he ruled out any deal to buy Entain. Calling it: Putting to bed any lingering speculation around a renewed bid for BetMGM JV partner Entain, Hornbuckle said MGM would be directing its M&A activities in the digital sphere towards building on the platform established via its LeoVegas buyout from last year. “The simple answer on Entain is ‘no’, we’ve moved on,” he said.
😱 Entain shares down nearly 12% in early trading in London ** SPONSOR’S MESSAGE** GiG is a leading gaming platform and sportsbook provider for online and land-based operators with digital aspirations. We deliver a full end-to-end solution through our award-winning iGaming and sportsbook solutions. Built for regulated markets and a top-class customer experience, GiG is pioneering the multi-platform era. If you are looking to expand your operations into new, profitable markets, our strategy is the solution. Find out more at sales@gig.com. OK boomerHornbuckle was speaking after MGM revealed Q4 numbers that were driven by a 27% leap in Las Vegas revenues to $2.3bn, which helped push total revenue up 17.5% to $3.59bn. Adj. EBITDAR was up 16.5% to $957.3m. Ex-the addition of the Cosmopolitan, same-store Las Vegas revenues rose 11% with particular growth at its luxury properties.
Macau is back: “We are experiencing a rebound as our guests are returning in force just as they did in Las Vegas,” Hornbuckle said of MGM’s properties in Macau. Hubert Wang, MGM China COO, said January had been a “very healthy, above-average recovery”.
The lab rate: Asked directly about the potential for cannibalization of land-based by iCasino in Michigan, which he noted was the test case, Hornbuckle said revenue in the online gaming business of BetMGM in the state was now ~25% better than the bricks and mortar side.
Further growth opportunities would come from Japan, where MGM and its partner Oryx are yet to hear back from the government, and New York, where Hornbuckle said MGM was ready to “almost immediately” add table games to its Yonkers property as and when it gets the go-ahead. Quick takes – MGM and EntainCan’t buy me love: The team at Jefferies in London said the news that MGM was calling a halt to any further speculation would likely hurt the share price in the short term, given the “prolonged period” of speculation regarding a potential tie-up. JMP said the news was the “only negative takeaway”.
Wynn’s junket substitutesThe shape of the returning market in Macau is the subject of conjecture. Junk to junket: Wynn said it was seeing an influx of previous junket business into the direct VIP and mass premium segments in Macau, as the business weaned itself off a diminished junket contribution. This came after the company also enjoyed a Chinese New Year bounce in January that has continued into the first week of this month.
Across the company, revenues for the quarter came dead on $1bn, while adj. EBITDAR was up 31% to $195.1m. Wynn Las Vegas revenues rose 18.5% to $585.5m and Billings noted that over 2022 it had generated $812m of property EBITDAR, adding that the strength had continued into Q1.
Going live: Noting the recent launch of sports betting in Massachusetts, with the company taking its first bet at the Encore Boston Harbor, Billings said the interactive division would have had flat EBITDA cash burn if it weren’t for Mattress Mack. As it was, the business saw $28m of further losses in Q4 vs. $18m in Q3.
** SPONSOR’S MESSAGE ** Your customers think your payment options suck. And you pay too much for them! Process payments with BTC, ETH & Stablecoins instead - fast, reliable and inexpensive. And never any chargebacks! Get set-up @ ICE by meeting CoinSmart - licenced and regulated in Canada by the Ontario Securities Commission, and in Europe. Your customers (and your CFO) will thank you. Book a meeting or drop us an email at smartpay@coinsmart.com. Wynn quick takesMarket capture: Wells Fargo said the numbers from Wynn were “as good as investors could have hoped”, adding that it had done a “nice job of allaying fears” over the impact of the decimation of the junket market. “Wynn can compete on its own merits to capture its fair share of Macau's $14bn 2019 VIP GGR,” the team added.
AGA Super Bowl surveyA record 50.4 million American adults are expected to bet on Super Bowl LVII on Sunday, a 61% increase from the record set in 2022, with bettors planning to wager an estimated $16bn on this year’s event, according to the latest research from the American Gaming Association.
NewslinesFlutter’s Sisal group has won the tender to operate the sports-betting concession of Morocco’s national lottery and sports-betting operator La Marocaine des Jeux et des Sports (MDJS). The launch is planned for January 2024. Gambling.com Group has entered into a strategic, multi-year partnership with Gannett, publisher of USA Today. Acroud announced that Tricia Vella has been appointed as interim CFO effective immediately. Meanwhile, Catena Media CFO Peter Messner will step down within six months. The Illinois Gaming Board is set to vote on a temporary casino license for Bally’s on Wednesday next week. ** SPONSOR’S MESSAGE ** Founded in 2013, Metric Gaming is based in Las Vegas and London and developed the industry’s first truly multi-tenant sportsbook platform, purpose-built to support operators across multiple territories, regions or States. Metric is proud to be partnered with both Racebook HQ and Lacerta Sports (powered by Starlizard) and will roll out innovative MTS solutions for both racing and sports in 2023, including soccer and four main US sports. To find out more, or book a meeting at ICE, please visit www.metricgaming.com What we’re readingDAZN signs a 10-year deal to stream the NFL ex-US. On socialRats. Calendar
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