January LV Strip gaming revenues fell 19%, worse than our projection of -8-12%. If we adjust table and slot hold to historical norm this and last January, gaming revenues fell 20%. Baccarat was a major contributor of the decline as volumes fell 49%. More troubling was that slot volumes fell 2.4%, reversing two straight months of YoY growth. We believe February slot volumes will also decline. Not exactly the start to the year the bulls were expecting.
Strip Details:
- Slot handle fell 2.4% (+1% on a rolling 3-month average).
- Slot win was flat as hold was 8.9% compared with 8.7% in January 2012 - both well above average
- Table volume excluding baccarat dropped 5% YoY (+3% on a rolling 3-month average). Table hold excluding baccarat was 11.6%, compared with 12.0% on a trailing twelve month average.
- Baccarat volume tumbled 49% (compared with +163% growth in January 2012)
- Baccarat win dropped 51% on hold of 12.0% (TTM: 11.9%, 12.5% in January 2012)
