Las Vegas Strip revenues were down 16 percent year on year in June to $446 million, results that are “moderately disappointing,” said Wells Fargo.
Analyst Cameron McKnight wrote in a note that the comparison between the year on year results was very challenging as last June’s baccarat set an all-time record for the month for both win and drop.
In the third week of June this year there was also only one large conference versus two large conferences in the same week last year. This June’s Electric Daisy Carnival reportedly drew over 400,000 attendees over the 3-day festival.
“That said, while EDC was material from an attendee standpoint, we don’t believe it had a material impact on gaming revenues given its core demographic.”
McKnight says June baccarat volumes were down 57 percent YoY, while core mass table, excluding baccarat, was down 4 percent YoY.
Slot volumes, a key indicator of the mass market, were down 4 percent n YoY .
“The high-end baccarat comparison was very challenging as last year baccarat win was up over 150%. Baccarat comps will get easier in the fall.”
“In our view, the weakness in Strip baccarat play is partly related to the anti-corruption initiative in China and the monitoring of Chinese visitors in Las Vegas.”
UBS analyst Robin Farley estimated strip gaming revenues for June 2015 were down 16.3 percent YOY, “weighted down by baccarat which faced tough YOY comps….”
June brings overall 15Q2 Strip revenues down 2.7 percent YoY, below UBS’ positive 4 to 5 percent growth expectations for Vegas and for MGM during the period.
“We believe MGM benefitted the most from Mayweather fight in May.”