Las Vegas strip gaming revenues rose 7.8 percent year-on-year in April, while underlying gaming revenues excluding baccarat were up 8.4 percent for the month, above UBS’ low single digit expectations for Vegas for the year, the research house said.
UBS analyst Robin Farley said in a note that April’s overall market gaming revenue growth was better than 15Q1 trends.
Baccarat revenues were up 5 percent in April, with a win rate of 12.95 percent, below last year’s 14 percent. This means that baccarat drop was actually up 14 percent YoY for the month, continuing the double digit increase in March after six consecutive months of YoY declines.
“Underlying revenues are slightly better than headline, and better than our +4-5 percent growth expectations for Vegas and for MGM in Q2’15 and +3-4 percent for FY’15. April brings YTD Vegas revenues up +1.7 percent, and up +2.7 percent ex-baccarat.”
Citing management, Farley said Wynn reported below expectations results in Vegas for 15Q1, which indicates that Vegas is not experiencing a recovery.
“Wynn has seen summer trends not pick up in the same way they did last year. With April market gaming revenue better than Q1’15 trends, this could imply some share loss for WYNN in April, as the commentary on Q2 softness was given in the last week of April. But one positive market data point after months of softness is too soon to call a trend.”