09/10/12 11:22 AM EDT

CHART DU JOUR: JULY STRIPPED DOWN

Takeaway: Better than expected headline but worse underlying metrics

In our 9/4/12 note, “LV STRIP: JULY DECEPTION” we had projected a strong headline revenue growth rate of high teens for July due to low slot and table hold last year – actual Strip gaming revenues grew 27% with an additional boost from very high baccarat hold and better baccarat volume
The important metrics – slot volume and ex baccarat table drop – fell 7% and 13%, respectively. This was actually worse than our projection of -3% and -2%, respectively. Two fewer weekend days versus last year did play a role but the numbers were still bad.
July represented the 4^th consecutive month of slot volume declines. For tables, July was the worst monthly decline for non-baccarat drop since August 2009.