Can Vegas recover?

Harrah's show a 16% increase in net revenue for the first 9 months of 2010, $1,054m up from $908m in 2009. But if you subtract out the addition of Planet Hollywood, then Ceasars revenue is probably still dropping in Vegas.

I don't know where you're getting the number from. From Caesar's 10-Q filing in Q3 last year:

Las Vegas Region (in millions), Year-to-Date
Q3 2010 Q3 2009
Casino Revenues: $1,127.5 $1,113.5
Net Revenues: $2,108.1 $2,048.8

In the notes to the filing, you can see that Planet Hollywood's Net Revenues was $159.2 million year to date so in fact, Las Vegas revenue is down about 4.9 percent. When you look at the other region's revenues, Atlantic City is down 5 percent, Louisiana/Mississippi is down 5.3 percent, Iowa/Missouri is down 2.9 percent, Illinois/Indiana is down 2.1 percent, while managed/international is up 3.4 percent.

Caesar's debt is 19.46 billion with only 100.3 million due, in 2013.

The keys to bankruptcy is the unwillingness of a lender to lend a company money because its balance sheet doesn't have assets to support the loan and the inability for the company to pay down its debts.

Because casinos are essentially cash generating machines, it is unlikely that Caesars nor MGM for that matter is going anywhere soon. Both companies are able to secure financing and are able to generate enough money to pay their loans. They've survived the downturns for now and I don't think the majors are going anywhere. Wynn and Sands are doing quite well due to the operations in Macau.

On the other hand Caesars is paying 1.5 billion in interest payments and is only generating 1 billion in cash. The creditors are getting restless...

Quote: boymimbo

I don't know where you're getting the number from. From Caesar's 10-Q filing in Q3 last year:

Las Vegas Region (in millions), Year-to-Date
Q3 2010 Q3 2009
Casino Revenues: $1,127.5 $1,113.5
Net Revenues: $2,108.1 $2,048.8

I got them from page 26 and 27 of this news release, http://investor.harrahs.com/phoenix.zhtml?c=84772&p=irol-news&nyo=1 .

However, I am willing to retract them since your numbers seem more accurate. It takes a while to read all those tables.

Your numbers are for Harrah's Operating Company:

"Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin' Hall & Saloon, Caesars Palace, Imperial Palace, and Planet Hollywood." - from page 6.

The numbers I have are from Harrah's Entertainment (page 20 - 21):

"Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin' Hall & Saloon, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas, Imperial Palace, Paris, Planet Hollywood and Rio." - from Page 5.

Quote: boymimbo

"Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin' Hall & Saloon, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas, Imperial Palace, Paris, Planet Hollywood and Rio." - from Page 5.

Isn't Bally's under the Paris license?

Quote: SanchoPanza

Quote: boymimbo

"Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin' Hall & Saloon, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas, Imperial Palace, Paris, Planet Hollywood and Rio." - from Page 5.

Isn't Bally's under the Paris license?

Bally's/Paris did operate under the same license for many years, but they were seperated a few years ago. At the same time Circus Circus and Slots A' Fun were combined into one license after decades. But that only affects the reports made by the Gaming Comission. Financial reports tend to consider all the Vegas casinos as one entity.

The main point for this overarching thread is that the strip gaming revenue has recovered slightly from it's low in October 2009, but the two largest companies Ceasar's and MGM Resorts are still losing more and more money every single quarter. Revenues are down, and profits are lower.

Gaming Revenue (12 months ending

Last Month of 12	Tables	Poker	Slots
October 2009	$2,575,812	$85,835	$2,824,471
November 2010	$2,882,761	$82,174	$2,813,130

So the $300m increase in table games combined with slight dip in poker and slots is not enough to even level out revenue for these two major companies. The modest turnaround is being shared mostly by Sands and Wynn . These two companies need it the least, as their Vegas revenues are increasingly becoming a minority percentage of the company.

Quote: SanchoPanza

Isn't Bally's under the Paris license?

Bally's/Paris did operate under the same license for many years, but they were seperated a few years ago. At the same time Circus Circus and Slots A' Fun were combined into one license after decades. But that only affects the reports made by the Gaming Comission. Financial reports tend to consider all the Vegas casinos as one entity.

The main point for this overarching thread is that the strip gaming revenue has recovered slightly from it's low in October 2009, but the two largest companies Ceasar's and MGM Resorts are still losing more and more money every single quarter. Revenues are down, and profits are lower.

Gaming Revenue (12 months ending ...

Last Month of 12 months	Tables	Poker	Slots
October 2009	$2,575,812	$85,835	$2,824,471
November 2010	$2,882,761	$82,174	$2,813,130

So the $300m increase in table games combined with slight dip in poker and slots is not enough to even level out revenue for these two major companies. The modest turnaround is being shared mostly by Sands and Wynn . These two companies need it the least, as their Vegas revenues are increasingly becoming a very minority percentage of the corporate revenues.

What is even worse is that the baccarat on the Vegas Strip has gone up $342M while the rest of the table games have gone DOWN $35m. There is some indications in Sands Quarterly Reports that the corporation is not trying to bring the big gamers to Las Vegas now, settling on flying them to Singapore where tax rates are much lower than Macau. It could be that the next Chinese New Year's (SO CRITICAL TO THE TURNAROUND IN 2010) will be a bust in Las Vegas.


Sands is now larger than MGM Resorts and is closing in on Ceasars.

Vegas is poised for another fabulous run.

Quote: JIMMYFOCKER

Vegas is poised for another fabulous run.

Based on?

Perspective analysis