• Companies already reported Q2 EPS
• An accounting quirk shifted $11m of May’s slot revenue into June. The Strip would’ve declined by 5% excluding this shift.
• Strip gaming revenue for the major casinos (over $72m in annual revs) actually fell by 7%.
• Strip slot volume (coin in, drop, handle etc.) actually fell by 9%. Casinos either tightened their machines considerably (consumers will figure that out) or they played lucky
We view slot volume as the relevant metric to be gleaned out of the monthly reports. The trend there is not good as depicted in the chart; negative since October 2007. Slot revenue only ticked higher in June on the higher hold percentage.
If anything, trends are bad and likely worsening. You wouldn’t know it by the stock action.