LEISURE LETTER (04/30/2014)

TICKERS:  BYD, WYNN

EVENTS TO WATCH: 

Wednesday, April 30

  • PNK Q1 – 8 am , Passcode: 27759612
  • GLPI Q1 – 9 am
  • MGAM Q1 – 9am
    MAR Q1 – 10 am , Passcode: 10575194
  • H Q1 – 11:30 am , Passcode:  11561402
  • BYD Q1 – 5 pm , Passcode:  44440004

Thursday, May 1

  • HST Q1 – 10 am
  • OEH Q1 – 10 am , Passcode: 22074904
  • FCH Q1 – 12 pm , Passcode: 28469900
  • WYNN Q1 – 430pm , Passcode:  17666834
  • BYI FQ3 – 4:30 pm
  • EXPE Q1 – 4:30 pm

Friday, May 2

  • April Employment Report
  • HT Q1 – 9 am , Passcode: 1398938

Tuesday, May 6

  • RHP Q1 – 10 am , Passcode: 25122491
  • SHO Q1 – 12 pm
  • TRIP Q1 – 4:30 pm
  • DIS FQ2 – 5 pm , Passcode: 36995300

Wednesday, May 7

  • STAY Q1 – 8:30 am

COMPANY NEWS

BYD – COO Paul Chakmak featured in a Executive Profile Q&A article in the Las Vegas Review-Journal. 

Takeaway: Would BYD allow an article to run this week if the company were going to "miss" earnings expectations tonight?

 

WYNN – announced it has reached "surrounding community" agreements with Cambridge and Medford and "neighboring community" agreements with Lynn and Melrose. The communities join Malden, which entered into a "surrounding community" agreement with Wynn in 2013. The announcement comes as the gaming commission is set to hold a public hearing May 1 on Boston's bid to be designated a "host community" for Wynn's proposed Everett casino and Mohegan Sun's proposed casino in Revere

Takeaway: Additional steps in the development process.


INDUSTRY NEWS

Suffolk OTB -will attempt to sell $90 million in bonds to finance their land acquisition and construction of a 1,000 slot casino and $65 million facility.

Takeway: widely discussed, but timing and subsequent opening seems faster than anticipated.

 

California Internet Poker - we've read an increasing amount of commentary that while internet poker is a low probability event this year, 2015 is looking significantly more likely as 2015 is a non-election year.

Takeaway: Given the strains on tax revenue, California needs to be creative in generating additional revenues - away from personal income taxes.  This is obviously an important market given the population. Operators that can secure the players here will have a leg up as internet poker goes interstate.

 

Philippines Gaming - Travellers International Hotel Group Inc. said it received approval from PAGCOR to expand its gaming area within the 11.5-hectare leisure and resort complex Resorts World Manila in Pasay City. The expansion of the gaming capacity would increase the number of gaming tables to 420 from 287 as of end-2013 and also double the number of gaming machines at Resorts World to 4,148 from 2,030 as of end-2013.  Phase 2 is expected to be completed by September 2015.

Takeaway: The buildout of the Philippines continues.

MACRO

Hedgeye remains negative on consumer spending and believes in more inflation.  Following  a great call on rising housing prices, the Hedgeye Macro/Financials team is turning decidedly less positive. 

Takeaway:  We’ve found housing prices to be the single most significant factor in driving gaming revenues over the past 20 years in virtually all gaming markets across the US.

 

 

 

 

 


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