It Is Wild How Volatile Baccarat Revenue Is For Big Casinos


Photo: Wikimedia Commons

Yesterday we reported on Wynn’s earnings, and noted based on the conference call that the company got creamed on weak baccarat “holds” as the luck went the customers way in the quarter.Citigroup breaks down the numbers, and shows how significant it was:

Total Net Revenue in Las Vegas -12% YoY to US$346m, driving adjusted property EBITDA -38% to US$81.9m (21% of total company EBITDA), vs our estimates of US$379m and US$108m, respectively. However, Normalized EBITDA would have been US$116m as baccarat hold was negative in April (with a 2Q hold rate of only 9% in baccarat), according to mgmt. As a result of the weaker table hold of 15.0% vs 27.6% in 2Q11 (and mgmt’s 21- 24% range), reported Casino revenue -38% YoY and reported EBITDA margins fell to 23.7% vs 34.0% in 2Q11 and 27.8% in 1Q12. Non-casino rev improved nearly 6% YoY to US$291m (with room rev +6%, F&B +10%, retail -8%).

So we’re talking massive swings in revenue and profit just based on the cards

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