TICKERS: STATION, AIRBNB, CCL, UBER
October 15: VAC 3Q CC ; PW: 13620306
October 15: WYNN 3Q CC , PW: 55746426
Station Casinos - Station, which has been privately held since 2008, announced plans Tuesday for an initial public offering that will return the company to the stock market.
Takeaway: As evidenced by our long BYD call, we like the LV locals gaming market exposure. We'll have more to say on this name.
AIRBNB - Jersey City could soon have something New York does not. On Monday, Mayor Steven M. Fulop will introduce legislation to legalize the use of all short-term sleepover web services, like Airbnb and HomeAway. The law is expected to be approved by November. In exchange for agreeing to let some of Jersey City’s 262,000 residents rent out a couch, a bedroom or even their entire apartment or house on Airbnb, the company would charge users the same 6% hospitality tax currently levied on guests at the city’s dozen hotels.
CCL - As cruise lines continue to jump into the growing Chinese cruise market, Carnival Cruise Line and AIDA -- both owned by Carnival Corporation -- announced that they will have ships in the country by 2017. The move by Carnival Corp. means that four of the company's 10 brands will have a foothold in China. Costa Cruises has been offering voyages in China since 2006, while Princess Cruises has been in China since 2014. In 2015, Carnival expects over 500,000 passengers in China, up from about 350,000 in 2014 -- a 43% increase YoY.
Takeaway: 2017 is shaping up to be a true test for the Chinese cruise market.
Star Cruises - Star Cruises could be upping its deployment to Vietnam nearly four times in 2016, according to a report in The Saigon Times Online. With 50 scheduled port calls in 2015, Star may be targeting upwards of 200 in 2016 with the SuperStar Libra and SuperStar Virgo, according to the report, sailing from Hong Kong and mainland China.
UBER - Uber is coming back to Broward County. Broward County (Fort Lauderdale, FL) commissioners finalized a new ordinance Tuesday for ride-sharing services such as Uber and Lyft. The ordinance passed in a 6-2 vote. The amended ordinance comes after Uber suspended its service in Broward County on July 31 after the county passed new requirements for ride-sharing drivers, including county background checks and a mandatory chauffeur's license.
Macau Airport Traffic - Macau International Airport handled over 120,000 passengers during the National Day golden week of holidays in the mainland this month, 6% more than in the corresponding period last year, the operator says.
Takeaway: A positive and consistent with the visitation data. GGR growth is much more difficult to come by.
Macau Tourist Price Index - The Statistics and Census Service (DSEC) indicated that for the third quarter of 2015 the Tourist Price Index dropped by 2.72% YoY to 131.46, the first decline since the third quarter of 2002. Notable decrease were observed in the price index of Accommodation (-10.88%) and Clothing & Footwear (-6.96%); meanwhile, price index of Food, Alcoholic Beverages & Tobacco; Transport & Communications; and Entertainment & Cultural Activities increased by 5.87%, 3.94% and 3.14% respectively.
Macau Consumer Confidence - The Macau University of Science and Technology’s index of consumer confidence in the city fell by 5.09% to 81.57 in the third quarter of this year.
China Macro - China's imports slumped by nearly 18% YoY to 924 billion yuan in September, while exports slipped by 1.1% YoY to 1.30 trillion yuan, Customs said. But that was an improvement on August's decline and better than the 6% drop forecast in a survey of economists by Bloomberg News.
REGIONAL REVENUES (SEPT):
- Iowa SS GGR: +2.1% YoY
- BYD: +9.1% YoY
- Missouri SS GGR: +3.6% YoY
- PENN: +9.2% YoY
Takeaway: As predicted, September looking much better in regional gaming than August. Earnings visibility for BYD and PENN looks good.