I really thought we would get an earnings surprise this quarter. Everything was there and in place. The killer was the Tyson-Holyfield fight. Yemenidjian indicated that the resultant disruption to the casino (two hours of downtime) resulted in a loss of $22 million. He likened these big fights to their New Year's Eve celebrations. IF that situation hadn't occured, the additional revenue that was expected would have easily pushed the quarter over into a significant surprise. |
Just meeting first call doesn't cut it in this market nowadays. Even with all time earnings. Had we beat the estimate by just 1 cent, I believe we would be at $36 right now.
Looking forward to this quarter, I am still optimistic. Reports I have read concerning advance bookings from major tour operators and airlines that feed the LV market are very positive for the second half of the year. They were not positive for the first half of the year. This should push room rates and occupancy higher. It is the new rooms that are driving casino revenue.
New York is still THE attraction, and will be until Bellagio comes on line. Over 1 million visitors PER WEEK to New York. Absolutely incredible. 99.5% occupancy. MGG is still 22% down from its high. The only negative I can see this quarter is the 600,000 shares in trust for Don King that will be dumped, due to the breakoff with MGG after the Tyson-Holyfield fiasco. Yemenidjian said that it would happen soon.