Good morning. On today’s agenda:

• LVS expresses confidence in the “extraordinary” Macau market.

• Rank sees improvements in its UK casinos.

• Star Entertainment issues profit warning on “unprecedented” downturn.

Whatever I said, whatever I did, I didn't mean it. 

LVS on a roll 

“We’re raging bulls on Macau,” says the CEO as revenues soar.

Keep the faith: Rob Goldstein said LVS would be investing more in “this extraordinary market” after forecast-busting Q1 figures, which showed revenues at $1.28bn, up 132% YoY, and Macau property EBITDA bouncing back to profit at $398m from a $11m loss this time last year. 

• With the Marina Bay Sands property in Singapore also enjoying a 113% revenue rise, it meant total revenues rose 123% to $2.1bn vs. consensus of $1.8bn.

• Companywide EBITDA rose to $792m from just $110m last year.

A big driver: Goldstein noted the Macau recovery was still “in its infancy”. “I wouldn't call it normal operating mode,” he added. Reaching for a sports analogy, he hit upon golf. “We're still at the driving range,” he said. “We haven't gotten to the first tee yet.”

• Recall, Macau saw the lifting of travel restrictions in China in early January and the return of foreign VIPs.

• But Sands China CEO Grant Chum noted that labor constraints impacted occupancy rates and 31% of Macau rooms were out of service during the quarter. 

• “There's a lot of noise in the quarter because of the start-up,” said COO Patrick Dumont.

• “We made $400m roughly without visitation really coming back very much, without hotel rooms being fully occupied, without a lot of impediments, a lot of headwinds and yet here we are,” added Goldstein.

• “I think we're going to be raging bulls on Macau, investing in the future.” 

I’m doing fine now: While the recovery in Macau “has not hurt” in Singapore, Goldstein did caution “there’s only so much money out there”. Singapore property EBITDA rose 225% to $394m – or 90% of pre-pandemic levels – helped by “astounding” slot numbers, according to Goldstein.

A touch of bling: He added that in Macau LVS would hope its Londoner and Four Seasons properties would “dominate” both the mass market and the high-end. “We cede no segment to our competitors,” he said. “We want to be first in every category.” 

• After pumping over $2.2bn of investment into Macau during the pandemic, Dumont said from LVS’s standpoint, “it’s a new day”.

• Chum said LVS would also be the beneficiary of a base mass recovery. He noted slot handle in Macau was currently at 73% of 2019 levels.

• Goldstein said the “only difference structurally” to Macau now versus pre-pandemic was the crackdown on junkets.

New York, New York: Goldstein said the group expected to hear about its bid for a Long Island resort in Q124, although Hofstra University continues to push back against the project. 

Analyst takes: Deutsche Bank said the Macau numbers were “meaningfully stronger” than expected, while Jefferies suggested the figures were “notably bullish” given the recovery is in its early stages.

🍆 LVS rises in after-hours trading

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Earnings+More readers poll

Your chance to have your say.

Everyone likes a poll, right? E+M has teamed up with YouGov to conduct our first ever readers poll. 

To take part, simply click on this link. The poll consists of 15 multiple choice questions and only takes a couple of minutes. We’ve tried it out and, like a quick check up with the dentist, it’s painless and over very, very quickly, we promise.

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Rank updates

Improvements in US casino trade drives optimism on full-year profits.

Back to the tables: Improved visitation across the Grosvenor casino estate helped drive a 15% YoY uplift in NGR in FY23 Q3 to £78m, online leapt 16% to £53m as group NGR rose 13% to £174m.

• The Mecca and Enracha land-based bingo businesses in the UK and Spain were also boosted during the period, up 9% and 8% respectively to £35m and £9m.

• While Q4 will be seasonally lower, Rank expressed confidence that operating profits for the year would be at the upper end of slightly ahead of the previously guided £10m-£20m.

• Despite the “challenging macroeconomic environment”, the improvements in the customer experience at its venues had “helped drive the improved performance”, said CEO John O’Reilly.

In Compliance+More

Going mainstream: US sports betting has a betting ads problem as a Coalition for Responsible Sports Betting Advertising is formed by the sports leagues and broadcasters.

Compliance+More

Sports-betting ads problem goes mainstream

Good morning. On today’s agenda: Responsible betting ads coalition formed by major leagues and networks. BetVictor loses ASA case on sports star advertising. PlayUp admits guilt in Ohio, gives up license application. Finland ends gambling monopoly, introduces new regime…

Read more

5 minutes ago · Compliance+More

Earnings in brief

Star Entertainment warning: The Australian casino operator warned it had seen a “significant and rapid” downturn in operating conditions at its Gold Coast and Sydney properties, driven by the impact of regulatory operating restrictions and a poor consumer environment.

• It added that the current earning performance was at “unprecedented low levels”, meaning FY23 EBITDA would come in at A$280m-A$310m vs. previous forecast of A$330m-A$360m.

• In response the company is making redundancies to help cut expenditure for the year by ~A$100m.

• The company has also engaged advisers to help with a strategic review of the Star Sydney.

Monarch Casino: The Black Hawk property in Colorado was the primary drive for Monarch as revenue grew 8% to $117m, while adj. EBITDA was up 6% to $37m. The company said it continued to grow market share with a “revitalized” casino floor.

Lottomatica guide price

A whole lot of money: Lottomatica has set its IPO guide price at €9-€11, which implies a valuation at float of €2.27bn-€2.67bn. The final price will be determined following the upcoming book-building process, which will take place next week.

• The owners hope to raise €600m through the sale of new and existing shares. The sale has been underwritten by Goldman Sachs.

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Datalines

DraftKings’ Mass gambit: The debut data from Massachusetts has confirmed the strong rumors that DraftKings wouldn’t miss out…

BetMiGM: iCasino dominance continues for BetMGM in Michigan.

Penn is mightier: Pennsylvania tops half-a-billion across all gaming in March.

Further reading: Check out the forthcoming edition of the Data Month on Tuesday for more reaction.

Calendar

• Apr 25: Boyd Gaming

• Apr 26: Kindred, Kambi, Rivalry, Churchill Downs earnings

• Apr 27: Churchill Downs call, Evolution, Betsson, GLP

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