MGM Resorts International

Las Vegas Sands (LVS) earns revenue through casinos, hotels, food and beverages, and convention or retail operations. The company’s main revenue driver is casino revenue. It’s generated from slot machines and table games. Casino revenue represents ~79% of the total revenues.

The occupancy rate is very important for casino resorts. The occupancy rate shows the relationship between the number of occupied rooms and the total number of rooms.

Casinos’ popularity is growing. This suggests that people like to gamble occasionally. Unfortunately, they don’t always win. For most of the people, the real fun is playing the game—not necessarily winning.

Texas Pacific Group and Apollo Management took Harrah’s Entertainment, now Caesars Entertainment, private in a leveraged buyout deal valued at $30.7 billion in 2008.

Things look fine for now Previously in this series, we discussed how mutual funds have a notably larger holding of corporate bonds at present than they had before the financial crisis of 2008. We’ve also talked about how regulatory changes could impact the role of banks as market makers. At the same time, the role […]

High yield bond issuance surged last week and hit its highest level in 2016 yet due to continued growth in volume.

Casino gambling is spread across major destinations around the world. Casinos, at major destinations, are being influenced by certain factors. This is hampering industry growth.

Adjusted property EBITDA shouldn’t be regarded as an alternative to looking at income from operations, which indicates operating performance. Nor is it an alternative to looking at cash flow from operations, which measures liquidity.

As an investor, you should know whether or not MGM’s (MGM) management is committed to its future. Management shows its commitment by owning shares.

The casinos in the Las Vegas Strip clearly benefit from high-end Baccarat play. Over the last four years, Baccarat revenue ranged from 43.5% of table games revenue in 2011 to 48.2% in 2013.

Macao’s shift from VIP gaming to the mass gaming market and non-gaming revenue is expected to benefit Macao in the long run.

MGM Resorts (MGM) was founded in 1986. MGM is based in Nevada. It’s one of the leading global hospitality and entertainment companies.

Caesars Entertainment’s (CZR) stockholders equity is negative, according to its latest balance sheet. Stockholder equity consists of capital contributed and retained earnings.

Las Vegas Sands’ adjusted property EBITDA at Marina Bay Sands in Singapore doubled, reaching a property record of $518.5 million, up ~100% year-over-year.

When inflation is low, consumers have greater purchasing power. They have a higher spending capacity. Greater purchasing power is a positive sign for casino resort companies.

Wynn Resorts (WYNN) earns its revenues through casinos, hotels, food and beverages, and entertainment and retail operations.

Wynn Resorts (WYNN) is currently constructing Wynn Palace, a fully integrated resort in the Cotai area of Macau.

MPEL derives ~94% of revenues from casino operations. Its casino business gross margin is 50% for the trailing 12-month period ending September 30, 2014.

On a year-over-year basis, real disposable income increased 2.9%. More disposable income boosts consumer buying power.

An overview of Las Vegas Sands (LVS) shows that the company currently owns 70.1% of Sands China Ltd., which operates LVS’s four Macao properties.

Macao’s casinos are trying to change Macao from a gaming-only destination to more of a Las Vegas–like destination.

Macao casinos’ $28 billion investment in integrated resorts is set to change the city’s gaming business.

As VIP business continues to remain sluggish, casinos are increasingly turning their attention towards the mass market.

For September 2016 through November 2016, the unemployment rate stood at 1.9%.

Macao casinos’ $28-billion investment in integrated resorts will change the city’s gaming. Capacity additions should increase the number of slot tables too.

The annual inflation in Macao fell to ~2.1% in July 2016. Inflation has, in fact, been on a declining trend in the region since February 2016.

After 26 consecutive months of declining revenues, Macao gaming revenues have finally shown a small spurt of growth.

Real disposable income increased 3.7% year-over-year. This boosts consumer buying power and means consumer spending in leisure activities may increase.

The strengths, weaknesses, opportunities, and threats (or SWOT) analysis is a useful tool for decision-making in businesses and organizations. It helps companies identify the positive and negative factors inside and outside an organization.

The casino industry has heavy capital expenditures in gaming machines. This contributes significantly to the total output that’s generated by a casino operator. This is why the threat of new entrants to the industry has been low.

The international gaming industry is growing quickly. It’s expanding to new jurisdictions. Many U.S. commercial casino companies, including Las Vegas Sands (LVS) and Wynn Resorts (WYNN), have helped the industry become an important part of the global economy.