Wynn Resorts and Las Vegas Sands: Vegas Slot Machine and Table Game Daily Unit Wins

The Short Take:

  • One way to look at a casino’s revenue and profitability is to look at the average daily wins per slot machine and gaming table
  • Las Vegas Sands had a daily win per slot machine during Q3 2018 of $351 at its Las Vegas casinos while Wynn’s was $334
  • Wynn conquered the daily win per gaming table with $4,003 in wins per table per day in Vegas in Q3 while LVS won $3,489 on average per day for each table in its Vegas casinos

With the third quarter financial reports for Las Vegas Sands (LVS) and Wynn Resorts (WYNN) in the rearview mirror we decided to take a look at some of the casino stats for each companies’ Las Vegas properties.

Slots

One way to look at a casino’s slot business is to see how much the casino wins per machine per day. Both LVS and WYNN report these stats in their quarterly filings.  In the third quarter, LVS won a daily average of $351 per slot machine per day at its two Las Vegas Strip casinos, Venetian and Palazzo.  Wynn’s average daily win per machine was a bit less, coming in at $334. In fact, over the last five quarters, LVS had a higher average daily win per machine in four quarters.

On a year-over-year basis, LVS’ average win per machine per day increased from $306 in the third quarter of 2017, or a YoY gain of 14.7%.  On the other hand, the win per day fell 4.6% YoY for WYNN, dropping from $350 in the same quarter last year.

Las Vegas Sands and Wynn Resorts have almost the identical number of slot machines in Las Vegas.  In the third quarter, LVS had 1,833 slot machines in its Vegas casinos.  WYNN’s two Strip casinos, Wynn and Encore, had a combined 1,823 machines.

 

Table Games

For table games, we can look at a similar statistic: the average win per gaming table per day. This includes gaming tables on the main casino floor.  It excludes poker tables.

In Q3 2018, WYNN beat out LVS in Las Vegas daily per unit gaming table wins.  Also, over each of the last five quarters WYNN’s daily wins beat out LVS. In Q3, WYNN had a daily average of $4,003 of wins per gaming table per day.  The win at LVS was significantly lower, coming in at $3,489.

On a year-over-year basis, WYNN saw a pretty significant drop.  Last year, in Q3 2017, the average daily win per table at WYNN was $6.065.  This represents a YoY drop of 34.0% this year. On the other hand, LVS saw a YoY increase of 9.3%, rising from last year’s Q3 daily win per gaming table of $3,193.

Like slot machines, WYNN and LVS have almost the exact same number of table games in Las Vegas. Las Vegas Sands’ two casinos have a combined 232 tables.  Wynn and Encore have a combined 235 tables.

 

Of course, looking at the average daily unit win for slot machines and table games is just one small way to look at a casinos’ revenue and profitability, but for investors, and the casual gambler, it is an interesting insight into the underbelly of a casino.

If you have interest in digging deeper into all of the casino and hotel stats for these two companies, check out the WYNN Data Viewer or the LVS Data Viewer.

How Much Do Las Vegas Sands Slot Machines Win Per Day?

The Short Take:

  • The Las Vegas Sands casinos located in Las Vegas won an average of $351 per slot machine per day for the house
  • The LVS casinos in Macau generally had lower wins per slot machine per day with the exception of the Plaza Macao which netted a daily win of $491 per machine
  • The standout among the company’s casinos was the Marina Bay Sands.  This casino in Singapore saw an $802 average win per slot machine per day

If you ever walked into a casino and were in awe of the number of slot machines and wondered how much each one wins every day, then you’re in the right place!

We took a look at the slot machine data provided by the Las Vegas Sands (LVS) for the third quarter of 2018, which ended on September 30.  This company owns the Venetian and Palazzo in Las Vegas and the Sands in Bethlehem, PA plus six casinos in Asia.

Domestically, the slot machines in Vegas won $351 per slot machine per day for the house.  You’ll notice on the chart below that this is the third best win rate in the company’s portfolio of casinos.  The Sands Bethlehem’s daily win rate per machine was significantly lower than the Vegas casinos, coming in at an average of $259 for the quarter.

So, you may be asking, is this daily win rate normal, better or worse than usual?  To get an idea, we calculated the year-over-year (YoY) growth rate for the win per slot machine per day for Q3 2018 compared to Q3 2017.

The chart below shows that the Vegas casinos’ daily win rate of $351 was 14.7% higher than the win rate a year earlier when it was $306.  On the other hand, the Sands Bethlehem’s Q3 2018 win rate actually dropped 4.1% compared to Q3 2017 when its win rate was $270.

In Macau the daily slot win per machine are generally lower.  This is mainly because slots are not hugely popular in Macau where LVS runs five casinos.  The one exception in Macau is the super high-end Plaza Macao & Four Seasons which saw the daily win per slot machine come in at $491, which was $150 higher than in Vegas.  Plaza Macao’s daily slot win in Q3 2018 was 29.2% higher than in the same quarter of 2017.

Las Vegas Sands’ casino in Singapore, the Marina Bay Sands, blew away the daily slot wins of all of the other casinos owned by LVS.  The Marina Bay’s daily win per slot machine was an astonishing $802 on average during the quarter.  This was a 20.4% jump from the third quarter of 2017 when the daily win was $666 per machine.

We’ll be taking a look at the average daily win per slot machine for other casinos soon, so be sure to bookmark Ante Research and check back soon!

Overview of Wynn’s Q2 2017 Casino and Room Revenue

Wynn Resorts (WYNN) reported its second quarter 2017 earnings this evening and we will take a dive into the company’s reported casino and room revenue stats.

Casino Revenue

For the second quarter, the company on whole had casino revenue of $1.167 billion, or a 57.0% increase from the second quarter of 2016.  While this seems like an amazing growth rate, it is not an apples to apples comparisons because last year the company’s newest property, the Wynn Palace was not open, so we need to dive into the operating segments to get growth numbers that make sense.

The Wynn Macau brought in $654.7 million in casino revenue in the second quarter which is a solid 7.4% increase from a year ago.  The company’s Las Vegas operations, which include Wynn and Encore, posted a 4.8% increase in casino revenue with $139.3 million in the second quarter.  The Wynn Palace’s total casino revenue contributed $372.2 million in casino revenue, and no year-over-year comparison is available since this property was not open during Q2 2016.



Room Revenue

Company-wide, room revenue brought in $176.2 million in the second quarter of 2017, a 23.3% increase from the same quarter a year earlier, which does not include the Wynn Palace.  Wynn Macau had $25.7 million in room revenue, a 12.2% decrease from Q2 2016.  The Las Vegas operations faired better, posting a 1.3% year-over-year growth rate with $115.1 million in room revenue in the recently reported quarter.  Wynn Palace rang up $35.4 million in room revenue this quarter.

Hotel Occupancy, ADR and REVPAR

While the Wynn Macau saw its occupancy rate increase to 97.5% in Q2 2017 vs 91.5% in Q2 2016, its average daily rate (ADR) and revenue per available room (REVPAR) both decreased double digits.  In the quarter reported today, ADR came in at $258, down 19.6% versus the $321 reported in the second quarter of 2016.  REVPAR slid 14.3%, coming in at $252 in Q2 2017 vs $294 a year earlier.



Wynn’s Las Vegas properties also posted year-over-year occupancy increases.  In the second quarter of 2017 it sold 88.7% of its rooms compared to 85.3% a year earlier.  ADR and REVPAR were a mixed bag.  ADR decreased 1.9% year-over-year with an average daily rate of $302 in 2017 compared to $308 a year earlier.  REVPAR increased by 1.9%: $268 this quarter vs $263 in the same quarter a year ago.

Wynn Palace posted occupancy at 96.2% with ADR of $232 and REVPAR of $224 for the second quarter of 2017.

In after hours trading, WYNN stock is down 3.8% after releasing its Q2 2017 report.


Golden Nugget Had Biggest June Internet Gaming Winning in NJ


The New Jersey internet gaming stats for June 2017 are out, and the Golden Nugget was the runaway winner.

In June, the Golden Nugget, owned privately by Landry’s, had total internet gambling wins of $5,576,526, or 27.6% of the total New Jersey internet winnings.  This was close to two million more than its nearest rival – the Borgata, owned by MGM, which brought in $3,887,240, or 19.2% of the state’s internet winnings, in June. In all, the five AC properties that run internet gambling in New Jersey had internet winnings of $20,233,399.



Here’s a rundown of each casino’s internet winnings for June 2017:

  • Golden Nugget: $5,576,526 (27.6% of NJ internet winnings)
  • Borgata (MGM): $3,887,240 (19.2% of total)
  • Resorts: $3,678,622 (18.2% of total)
  • Caesars (CZR): $3,611,618 (17.8% of total)
  • Tropicana (TPCA): $3,479,393 (17.2% of total)
  • TOTAL: $20,233,399

Not only did the Nugget claim victory in the race for total internet winnings, it blew out the competition in terms of year-over-year winnings growth.  Compared to June 2016, the Golden Nugget’s June 2017 internet winnings represent a massive 57.8% increase.  The next closest year-over-year increase in internet gambling winnings was Resorts at 36.1%. Overall, New Jersey internet gambling winnings increased by 23.4% in June 2017 vs June 2016.

Here’s the year-over-year growth rate for internet gambling winnings in New Jersey:

  • Golden Nugget: 57.8%
  • Resorts: 36.1%
  • Caesars: 18.8%
  • Tropicana: 4.0%
  • Borgata: 2.9%
  • TOTAL: 23.4%

Each AC casino offers internet gambling to people physically located in-state through several websites.  In June the following websites offered casino gambling in New Jersey:


  • Operated by Borgata
    • BorgataCasino.com
    • BorgataPoker.com
    • NJPartyPoker.com
    • PalaCasino.com
  • Operated by Caesars
    • CaesarsCasino.com
    • HarrahsCasino.com
    • WSOP.com
    • 888.com
  • Operated by Golden Nugget
    • GoldenNuggetCasino.com
    • BetFairCasino.com
    • PlaySugarHouse.com
  • Operated by Resorts
    • ResortsCasino.com
    • MoheganSunCasino.com
    • PokerStarsNJ.com
  • Operated by Tropicana
    • Tropicana.com
    • Virgin.com

MGM Resorts Historical Post-Earnings Price Performance

How will MGM’s stock price react to its earnings report on July 27?  We don’t know, but we can gleam some insight by looking at how the stock reacted historically to past earnings announcments.

To do this we looked at the price performance of MGM from the close the day before the announcement date to the close one day after for the last twelve quarters.

Report DateEPS Beat/MissPrice Performance
4/27/1746.2%3.1%
2/16/17-35.3%-10.1%
11/7/16625.0%6.0%
8/4/1623.8%2.8%
5/5/1623.1%2.5%
2/18/16-114.3%-10.0%
10/29/15400.0%6.6%
8/4/1554.6%12.6%
2/17/15-83.3%3.9%
10/30/14-133.3%1.6%
8/5/1475.0%-5.0%
4/29/14110.0%9.6%

 



Over the last twelve reported quarters, MGM reported EPS that beat the Wall Street consensus EPS estimates nine times.  During these nine quarters that MGM beat estimates, its stock price increased every single time.  In fact, the average increase during these nine quarters was 5.4%.  The largest post-earnings increase was 12.6% for the quarter reported on 8/4/2015.  The smallest price increase was 1.6% after the quarter reported on 10/30/2014.

For the three quarters where MGM missed EPS estimates the stock fell every time.  Not only did the stock fall each of these three quarters, it fell big: the average of these three quarters was an 8.4% decline with the largest post-earnings price decline of 10.1% after the 2/16/2017 earnings announcement.



While stocks move for many reasons after earnings are released other than the reported EPS, such as reported revenue or updates on key metrics or guidance, the price action of MGM has recently been heavily correlated to the EPS beat or miss.  Stay tuned for MGM’s earnings on the 27th to see if this trend continues.

 

How LVS Performs After Earnings Are Released

With Las Vegas Sands poised to release second quarter earnings on Monday, July 24, it makes sense to take a look at how LVS stock has performed historically after earnings were released.

To do this, we looked at the last twelve earnings releases and calculated the price performance from the close one day before the earnings release date to the close one day after the release date.  The table below shows this price performance in addition to the EPS beat or miss.  The EPS beat or miss is the percentage that the reported actual EPS was above or below the consensus EPS Wall Street estimate.



Las Vegas Sands (LVS) Post Earnings Performance

Report DateEPS Beat/MissPrice Performance
4/26/176.5%1.2%
1/25/17-4.6%-6.3%
11/3/1622.0%2.6%
7/25/16-7.1%7.0%
4/20/16-26.2%-9.7%
1/27/16-3.1%4.7%
10/21/154.8%-1.5%
7/22/15-1.6%1.6%
4/22/15-10.8%-0.6%
1/28/1513.6%-2.6%
10/15/140.0%7.4%
7/16/14-4.5%-1.2%

Over the last twelve quarters, LVS traded up six times and it traded down six times.  This lines up perfectly with the EPS beat or miss.  Every time LVS posted an EPS beat the stock performed positively; every time LVS posted an EPS miss the stock performed negatively. Unlike the price performance of WYNN, over the last twelve quarters EPS and price performance around earnings are 100% correlated for LVS.

This 100% correlation between EPS beat or miss and the price performance is actually very strange.  While the reported EPS is important, investors look at a wide range of statistics and metrics during an earnings release, including reported revenue and company specific key statistics such as REVPAR and casino win rate.  In the case of LVS (and its cohort WYNN) stats in its Macau division are also strong stock price drivers.



With all of this said, the correlation of the reported EPS and the price of the stock after earnings for LVS is important to understand.  We’ll see if this streak holds when LVS reports earnings next week.

Historical Performance of WYNN After Earnings

Looking forward to WYNN’s earnings release on 7/27/17, I decided to take a look at how the company’s stock price has reacted to past earnings announcements.

The methodology used is pretty simple. I calculated the price performance of WYNN stock from the close of trading the day prior to the earnings announcement to the close the day after the earnings announcement.

As an example, last quarter WYNN reported on 4/25/17. The price performance of +8.3% is the performance from the close on 4/24/17 through the close on 4/26/17.  The stocks performance following earnings releases are shown for the last 12 quarters in the table below.


WYNN Stock Performance After Earnings

Report DateEPS Beat/MissPrice Performance
4/25/1767.6%8.3%
1/26/17-25.4%6.9%
11/2/16-5.1%-10.9%
7/28/1610.3%-4.2%
5/5/1628.9%0.0%
2/11/1639.2%18.9%
10/15/1514.7%0.7%
7/29/15-23.7%6.2%
4/26/15-48.5%-1.0%
2/3/15-16.7%-2.4%
10/28/147.1%1.2%
7/29/141.4%3.6%

The first column shows the date of the earnings release.  The second column shows the percentage by which the announced EPS beat or missed the consensus sell-side estimates.  The third column shows the price performance from the close one day before the earnings release date to the close one day after.

In the last 12 quarters, WYNN beat the consensus EPS estimate six times.  Of those six quarters with EPS beats, the stock had positive price performance four times, was flat one time and was negative two times.  Of the six quarters with EPS misses, the price performance was positive three times and negative three times.

As we all know, stocks trade on much more that EPS beats or misses nowadays, but this analysis can give you a good feel for how the stock price reacts to during earning announcments.


A Review of Las Vegas Sands’ (LVS) Key Stats Ahead of Earnings

With Las Vegas Sands’ (LVS) 7/24/17 earnings approaching I wanted to take a few minutes to review some of the casino company’s key stats. These key stats, among others, typically drive the stock price right after earnings are reported.  Here we will look at several of the company’s key revenue segments: total casino revenue an total room revenue on a property level.

Total Casino Revenue

The chart below shows the total casino revenue of each property (or group of properties in the case of its Las Vegas operations) over the last eight reported quarters, with the 3/31/17 quarter being the most recent reported quarter.

 


  • Venetian Macao: In the 3/31/17 quarter, the Venetian Macao had total casino revenue of $646M.  This represents a 1.4% drop from the year ago quarter.
  • Sands Cotai Central: This property brought in $390M in total casino revenue.  This was a disappointing 15% year-over-year drop from the same quarter in 2016.
  • Parisian Macao: This new property recorded $279M in casino revenue in the 3/31/17 quarter.
  • Four Season Hotel Macao and Plaza Casino: The $107M in casino revenue was a drop of 3.6% versus the same quarter a year ago.
  • Sands Macao: Finally, an increase in casino revenue!  Sands Macao casino revenue came in at $176M in the 3/31/17 quarter, a 3.5% increase from the 3/31/16 quarter.
  • Marina Bay Sands: The $550M casino revenue was a solid 21.4% increase in casino revenue from the year-ago quarter.  This represents the largest year-over-year increase for any of LVS’s operating units.
  • Las Vegas Operations: The Las Vegas casinos posted a solid 18.3% year-over-year increase in casino revenues, posting $123M in the first quarter of 2017.
  • Sands Bethlehem: The company’s lone PA casino brought in $133M in casino revenue, a 2.3% increase from a year ago.

Total Room Revenue

Like it does for casino revenue, LVS breaks down total room revenue by property.  The chart below shows the last eight reported quarters of total room revenue.

  • Venetian Macao: The $44M in total room revenue in the 3/31/17 quarter was a 4.3% decline from the same quarter in 2016.
  • Sands Cotai Central: This hotel brought in $66M in room revenue, a year-over-year drop of 1.5%.
  • Parisian Macao: In the 3/31/17 quarter, the Parisian Macao, the company’s newest hotel, saw total room revenue of $29M
  • Four Season Hotel Macao and Plaza Casino: This hotel brought in $8M in the 3/31/17 quarter which is about flat from a year ago.
  • Sands Macao: Sands Macao brought I about $5M in the last reported quarter, which is flat versus a year ago.
  • Marina Bay Sands: Marina Bay’s room revenue had $94M of room revenue in the 3/31/17 quarter, a solid 5.6% increase from the 3/31/16 quarter.
  • Las Vegas Operations: The Las Vegas hotels posted the largest year-over-year increase in room revenue of any of the company’s revenue segments.  It’s $157M of room revenue was a 6.1% increase from a year earlier.
  • Sands Bethlehem: The Sands Bethlehem room revenue of $3M was about flat from a year ago.


When LVS reports their 6/30/17 quarter on July 24, 2017, investors and traders will be looking at key stats such as casino and room revenue.  The details of the China operations will definitely be in focus.  As we see in the charts above the Macau properties have had a tough time the last several years, but it seems like a rebound is in the works.  Stay tuned for the second quarter earnings next week!

 

A Look at WYNN Key Stats Ahead of Earnings

With WYNN scheduled to report earnings on July 27, 2017 I thought it would make sense to take a look at some of the company’s key stats ahead of the earnings announcement.  Like most companies, WYNN has several key stats that investors look at to determine the health, growth prospects and management of the company.  Here, we’ll look at a handful of these key stats: total casino revenues, total hotel revenues and several hotel stats.

WYNN management breaks down reported revenue into two main categories: revenue from casino operations and revenue from hotel operations.  The company further breaks each of these down into three operating units: Macau, Wynn Palace and the Las Vegas Operations, which includes Wynn Resort and Encore.

Total Casino Revenue

WYNN’s last reported quarter (the quarter ending 3/31/17) showed a nice bounce in casino revenue for the company’s Macau operations.  Total revenue increased to $554.9M from the previous quarter, but this was down 2.9% from the same quarter in 2016.  The newly opened Wynn Palace saw total revenues for the 3/31/17 quarter come in at $429.9M.  Wynn Palace only opened in the 9/30/16 quarter, so year-over-year comparisons are not available.  Las Vegas Operations saw total casino revenue of $166.3M, about flat from the previous quarter, and up 3.3% from the same quarter in 2016.


The following chart shows the total casino revenue for WYNN’s three revenue segments from the 3/31/14 quarter through the 3/31/17 quarter.  As you can see, the Macau segment is fighting for a comeback from its steep decline during the last several years.  The Las Vegas segment is about on par to its historical revenue numbers.  And the Wynn Palace segment is just starting to take off after opening in late 2016.

Total Room Revenue

Like total casino revenue, WYNN reports total room revenue in three segments.  The Wynn Macau segment reported total room revenue of $25.5M in the 3/31/17 quarter.  This was near flat to the previous quarter, but it was a 16.1% decrease from the same quarter in 2016.  Wynn Palace brought in $39.7M in room revenue in the 3/31/17 quarter, down slightly from the previous month.  Again, Wynn Palace was not open during the 3/31/16 quarter, so year-over-year comparisons are not available.  Las Vegas Operations was the shining star.  This segment rung up $114.9M in room revenue, up nicely from the $105.7M in the previous quarter and up a solid 9.3% from the same quarter a year earlier.

Revenue Split

For the entire company, which includes Macau, Wynn Palace and the Las Vegas Operations, WYNN provides revenue split between Casino, Rooms, Food and Beverage and Entertainment Retail and Other.  The percentage of total revenue for the 3/31/17 quarter breaks down as follows:


Casino Revenue as a Percent of Total Revenue: 72.5%

Rooms Revenue as a Percent of Total Revenue: 11.4%

Food and Beverage Revenue as a Percent of Total Revenue: 9.6%

Entertainment, Retail and Other Revenue as a Percent of Total Revenue: 6.5%

Hotel Stats

The Wynn Macau revenue segment consistently has room occupancy in the mid-90% range.  Over the last four reported quarters, average occupancy was 94.7%.  While the average daily rate, or ADR, has declined in Macau over the past several years, the average of the last four quarters was $280.  Likewise, the revenue per available room, or REVPAR, has decreased in Macau from the low $300’s to $264 on average during the last four reported quarters.

At Wynn Palace, the 3/31/17 quarter showed room occupancy of 95.6%, up from the previous two quarters during the hotel’s opening phase.  ADR was $258 last quarter while REVPAR was $246.

The Las Vegas Operations have fairly consistent hotel occupancy in the mid to upper 80% range, with the average of the last four quarters coming in at 86.2%.  The ADR for the Las Vegas Operations have been ticking up as of late with the four quarter average coming in at $301.  REVPAR, too, has been ticking up, coming in with a four quarter average, as of 3/31/17, or $259.

Historically, the Macau operations have been the driving force of the stock price for WYNN, especially when earnings are reported.  While this is important, a healthy Las Vegas Operations segment is important also, as is the newly emerging Wynn Palace segment.

We’re looking forward to see how these key statistics flesh out during the 7/27/17 earnings release!


Atlantic City Total Casino Winnings Flat But Most Casinos Continue to Benefit From Taj Closing

The June 2017 casino revenue reports show that total casino winnings in Atlantic City were virtually flat in June 2017 versus a year ago. In June, the seven operating casinos pulled in winnings of $197,488,784. This is a -0.003% decrease from June 2016 when AC casinos pulled in $197,493,766.

While the flat casino winnings may be disappointing, most casinos saw significant year-over-year increases as a result of the closing of the Taj Mahal. The June 2016 winnings include winnings at the Taj, and most casinos benefited by that casinos closing.



The Tropicana produced the largest total winnings growth rate at 20.4%, followed by the Golden Nugget with a 14.7% year-over-year growth rate. The only casino to post a negative growth rate in June was Caesars. Caesars total winning dropped 1.9% from a year ago.

The table below outlines the year-over-year growth rates of total winnings of the seven current AC casinos.

 

As you can see, it has been a pretty good year so far for the remaining Atlantic City casinos.  All of the casinos have been benefiting from the closing of the Taj and other casinos.  The notable winner is the Trop which has seen double digit growth rates in its casino winnings.  While the individual casinos are posting gains pretty consistently every month, the casino winnings for the entire AC casino market has been a mixed bag.  As you can see in the table above, since January, the total AC winnings growth rate has been positive 3 months (January, March and May), negative 2 months (February and April) and flat one month (June).

While the Tropicana can boast that it had the largest winnings growth rate, the Borgata still remains the most profitable Atlantic City casino based on total casino winnings.  In June 2017 the Borgata won $59,835,792 in its casino.  The next closest casino was Harrah’s which won $31,647,463.  Here is the full list of casino total winnings for June 2017:



Borgata: $59,835,792

Harrah’s: $31,647,463

Tropicana: $28,459,162

Caesars: $24,688,410

Bally’s: $18,156,634

Golden Nugget: $18,017,766

Resorts: $16,683,557

ALL CASINOS: $197,488,784

With the peak summer season upon use, it will be interesting to see if Atlantic City casinos can ramp up their casino winnings and build momentum before new pressures arise from the pending opening of the Hard Rock and possible reopening of the Revel.