LEISURE LETTER (05/12/2015)

Tickers:  WYNN

EVENTS  

  • May 13 - IGT 1Q CC 8am, ; PW: 2660253

  • May 14 - Genting Singapore 1Q CC  6am

  • May 14 - Macau Legend Development 1Q CC 8:30pm

COMPANY NEWS  

WYNN - The largest individual shareholder, T.Rowe Price, in Wynn Resorts Ltd has cut its stake by almost 40%, according to a filing to Nasdaq on Monday. TRowe now holds 10.4 million shares of WYNN, down from ~17.1 million it held .

ARTICLE HERE 

 Takeaway: Long only's finally capitulating in Macau stocks?

GC.CN - Great Canadian Gaming to acquire Casino New Brunswick for ~$95M. The purchase price represents an acquisition multiple of approximately 8.0x – 8.5x the casino's 2014 normalized EBITDA. Closing is expected to occur in fall of 2015.

 

Universal Entertainment - The Philippine gaming regulator (PAGCOR) has confiscated a PHP100-million (US$2.2 million) guarantee payment from Tiger Resort, Leisure and Entertainment Inc – developer of casino resort Manila Bay Resorts (pictured in a rendering) – citing delays in the project.

Francis Hernando, VP of PAGCOR said that the provisional gaming licence is in danger of being suspended because Tiger Resort has not met the minimum requirement of 50 percent project completion by the March 2015 deadline.

In February, Tiger Resort sought for an extension of the deadline to the second quarter of 2017, citing changes in the design of the casino project – a request denied by Pagcor, the news agency reports.

ARTICLE HERE 

Takeaway: Okada's Philippines project is in serious trouble.

Viking - Delivery of Viking Sky has been rescheduled from June 2016 to February 2017.

INDUSTRY NEWS

Singapore licenses - Singapore has "no plans" currently to offer additional casino licenses when the moratorium on such licences expires in 2017, Senior Minister of State for Trade and Industry Lee Yi Shyan said yesterday.

The Government will instead focus on working with the two integrated resorts (IRs) to ensure their attractions and services continue to meet the needs of Singaporeans and enhance the country's tourism appeal, he added in Parliament.

ARTICLE HERE

Macau Cash Handouts - The head of the Social Welfare Bureau, Iong Kong Io, said yesterday that the government does not intend to bring an end to its cash handout program next year, Radio Macau reported. “I don’t think the cash handout program will be canceled. The government is assessing this matter according to its budget; so the cash handout value will either decrease or be maintained,” he stated.

ARTICLE HERE

Iowa SS April Gaming Revs: -2% YoY

Puerto Vallarta port calls canceled - Civil unrest and violence around Puerto Vallarta led to cruise lines canceling ship calls there.

ARTICLE HERE 

MACRO

Hedgeye Macro Team remains negative Europe, their bottom-up, qualitative analysis (Growth/Inflation/Policy framework) indicates that the Eurozone is setting up to enter the ugly Quad4 in Q4 (equating to growth decelerates and inflation decelerates) = Europe Slowing.

Takeaway:  European pricing has been a tailwind for CCL and RCL but a negative pivot here looks increasingly likely in 2015.