Sands sheds $3bn on investor Macau fears
LVS earnings reaction, 888 progress, sector watch – retail financial trading +More
Las Vegas Sands shares drop 9% following consensus estimates miss.
In +More: NC and Ontario by the numbers, BettingJobs’ Jobsboard.
888 CEO’s new strategy shows green shoots of recovery.
Sector watch takes a look at Plus500.
You do it to yourself, you do, and that's what really hurts.
LVS sheds 9% on Macau fears
’Fessing up: Las Vegas Sands saw its share price drop by nearly 9% on Thursday following an earnings announcement that showed the company missing consensus estimates in Macau due to construction disruption at the Londoner property and its Macau Arena. Of the disruption effects, COO Patrick Dumont said on the call with analysts “we did this to ourselves.”
Supreme leader: Still, CEO Robert Goldstein said the company was “supremely confident” in the future growth of the market.
He noted the company’s investment meant LVS would “grow faster than the market” over the long term.
However, analysts pointed out the $610m of adj. EBITDA in Macau, though up 53% YoY, was some $67m below consensus.
😱 Las Vegas Sands shareholders have a day to forget
Sing when you’re winning: There was better news from Singapore where Goldstein said the record numbers being produced by Marina Bay Sands were an example of “what happens when a superior product is located in the proper market.” Notably, the company has completed its refurb of two of the hotel towers at that property, while the $750m renovation on Tower 3 has commenced.
Goldstein said the Singapore market benefits from a packed event calendar. “It’s not just Taylor Swift, it’s not just the Hamilton show, it’s endless events, F1, it’s a juggernaut.”
“This market has become very special in a very short order,” he added.
Comparing the Londoner to Singapore, Goldstein said “the same thing will happen” in Macau as GGR and visitors accelerate.
By the numbers: Singapore generated adj. EBITDA of $597m, up 52% YoY and helping to push total adj. EBITDA up 52% to $1.21bn. Revenues rose 40% to $2.96bn.
I’m walking here: Goldstein said LVS was “very disappointed” by the ongoing delays to the decision over the awarding of licenses for downstate casinos in New York.
“I don't think we have any real clarity and, to be honest with you, it’s confusing and disappointing because we’ve put a lot of work into New York and a lot of time into it,” he added.
Thai boxing: Goldstein was more optimistic about the progress made in Thailand towards opening up the market to resort casino. Though pointing out it was “early days,” he said it was a “very exciting market on a lot of levels.”
“Just the sheer size of population, the accessibility,” he said, noting it is the no. 1 tourist destination in southeast Asia.
“It could be faster [to market] than Japan.”
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+More
NeoGames has confirmed it has received all the necessary regulatory approvals required for the completion of its merger with Aristocrat.
Bet365 and Playtech have announced the launch of a new live casino game show called Super Mega Ultra. The game will feature multiple payout options and is accessible in the UK, Mexico and Ontario.
Pragmatic Play has expanded in Brazil by integrating its portfolio of games with Pixbet.
Anything you can do: Meadowlands is likely to get the green light to open a casino in the northern part of New Jersey after New York City casinos open, according to an AP report.
By the numbers
North Carolina: OSB handle for the first partial month of March hit $659m. Promos made up $203m of the total. GGR came in at $66.5m.
Ontario: GGR rose 72% YoY to C$2.4bn ($1.7bn) in 2023, according to iGaming Ontario. Total wagers, not including promos, reached C$63bn, a 78% increase YoY. iCasino represented C$1.8bn of the total while OSB was worth C$588m and poker was worth C$67m.
Read across
Banned! Jontay Porter pays the price for betting on his own team, in Compliance+More. In LosIngresos+Mas, meanwhile, Brazil’s finance minister sets up a working group to settle upon the regulatory framework.
Coming soon
What we’re reading
Dustin Gouker on how ESPN Bet is doing. And from EKG, a look at the damage Fanatics has wrought to DraftKings’ VIP business in New Jersey.
Capital Markets Forum, New York
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888 update
Baby steps: The first signs of progress for CEO Per Widerström’s new strategy were visible in Q1, with revenue for the three months of £431m slightly ahead of the guidance range laid out in the FY numbers at the end of March. This represented a 2% increase in Q4 but a 3% fall YoY.
In the UK & Ireland there was a 4% increase in gaming but this was offset by reduced sports-betting revenues, meaning total revenues were down 1%.
International revenues rose 6% sequentially but were off 2% YoY, while retail revenues fell 7% YoY.
All change: Widerström said 888 had now “lapped various regulatory and compliance changes” and that it was now full steam ahead with the newly minted ‘value creation plan’ where the aim was to see sustained revenue growth of between 5% and 9% a year.
Recall, the company will soon change its name to evoke and recently sold selected US B2C assets to Hard Rock Digital.
Earnings in brief
Rank: The Grosvenor Casino to Mecca Bingo operator saw continued progress in its FY24 third quarter, with revenues up 6% to £182m, and with revenues up in all divisions. Year-to-date revenues of £545m were up 8%.
The company divulged it was planning the sale of a stake in India-based online rummy business Passion Gaming in the next few weeks. It did not disclose either a price or the buyer.
FDJ: Q1 revenues rose 7.2% to €710m, with the former monopoly operator saying it saw strong momentum in its online games unit. Lottery revenue rose 1.4% to €504m while sports betting and gaming was up 9.5% to €141m. Other revenue rose 77% to €65m.
Stéphane Pallez, CEO, said the company was confident it would be able to press ahead with the proposed $2.8bn Kindred acquisition.
Monarch Casino: Net revenue rose 4.3% to $122m while adj. EBITDA was up 5.7% to $38.5m, as the company said its Black Hawk, Colorado property continued to take market share.
Analyst takes
Entain: While Q1 was ahead of expectations, the team at Jefferies said they did not expect any material change to consensus EBITDA for the year of £1.05bn. The team pointed out the “streamlined focus” on core markets should lead to a turnaround in NGR momentum later but that the next catalyst would be the “upcoming” CEO appointment.
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Sector watch – retail financial trading
That’s a plus: The retail CFD and spread-betting house Plus500 said revenue rose 4% YoY and 14% sequentially to $216m, helped by what it said was an “already not insignificant” contribution from new customers to its retail offering. New customers rose 13% YoY and 61% QoQ to 32k.
Betting against the house: As was noted by The Times, this translates to the company profiting from customer losses given it only partially hedges against positions taken by its customers. Client losses – or customer trading performance, as Plus500 terms it – came in at $30.6m.
The company said it expects this metric to be “broadly neutral” over time.
Customer income rose 7% to $170m.
The trading statement said that further “strategic progress” had been achieved in the quarter, including in the US futures market where the B2B institutional offering “continued to perform well.” In the UAE, meanwhile, it said it had seen increases in new and retained customers.
Calendar
Apr 24: Evolution, Kambi, Kindred, Churchill Downs
Apr 25: Boyd Gaming
Apr 26: Betsson, Gaming & Leisure Partners
Apr 30: Caesars Entertainment
May 1: MGM Resorts, Bally’s
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