Sorry, but there’s really no other way to put it. We’ve been pretty bearish on MGM Resorts (MGM) with our estimates on the company’s numbers coming in way below the Street consensus. We may need to revise downward after the latest May data on the Vegas Strip. Basically, Vegas is performing poorly (and that’s putting it lightly) and even offering one of our managing directors a $24 hotel room at Excalibur. If that doesn’t scream of desperation, then let us know what does.
The Strip’s gross gaming revenue fell 18% year over year in May. That’s a huge drop. Baccarat is struggling and slots ruled in the month of May. It’s looking pitiful out there and MGM is going to have a rough quarter.
Here’s the story, by the numbers:
• Slot handle fell 7% off of a relatively easy comp
• Slot win lost 3% despite higher than normal hold
• June hold may be below normal due to end of month on Saturday
• Baccarat (bacc) win fell 47%, on hold of 8.2% (TTM: 12.5%); baccarat volume fell 22%
• Table win ex bacc fell 18% on below average hold of 10.3%;
• Table volume ex bacc grew 2%
• Hold-adjusted total win was -11%