Three prominent Las Vegas hotel-casino properties have failed to meet third quarter Wall Street revenue expectations.
But not by much.
Caesars Entertainment, MGM Resorts International and Wynn Resorts all came in below analyst predictions, but it was not necessarily a surprise since gaming revenue tends to decrease in the summer.
Caesars Entertainment missed revenue estimates by 1.5 percent, reporting roughly $2.87 billion in net revenue for the three months of July, August and September. The company was down 1.3 percent year over year, but its $1.06 billion in revenue just from Las Vegas hotels is still a pretty good all.
MGM Resorts reported $4.18 billion in net revenue for the quarter, with $2.13 billion of that figure coming from Las Vegas. That is still a 1.3 percent gain compared to the same time last year.
Wynn Resorts missed revenue estimates by 2.4 percent.
Combined, the three gaming behemoths own 19 Las Vegas properties. All three are publicly traded companies.
Despite a relatively small percentage in the failure to meet estimates, some Wall Street analysts say to be wary of future results. Said Chad Beynon, a senior analyst at Macquarie:
“We remain positive on the non-gaming outlook in Vegas given strong group travel and events calendar, but we are becoming more cautious on slowing leisure travel demand, which could lead to a more competitive promotional environment and hurt Vegas margins,” Beynon wrote in an investor’s note. “In addition, comps in 4Q and 1Q are becoming increasingly difficult as we lap F1 and Super Bowl, respectively.”
Las Vegas has tried to lure more tourists through high-profile events.
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