Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Today we take a look at a variety of financial updates from the likes of IGT, Wynn Resorts and Caesars Entertainment, a purchase of MGM Growth Properties, and Penn National Gaming acquisition.
17.2
Vici Properties is to acquire MGM Growth Properties for a total consideration of $17.2bn, following ”transformational agreements” inked with MGP and its controlling shareholder MGM Resorts international.
As part of the agreement, MGM Resorts will receive cash proceeds of approximately $440m, and will own an estimated one per cent stake in the Vici operating partnership, worth in the region of $370m.
The transaction, which has been approved by the board of directors of MGM Resorts, MGP and Vici, is expected to close in the first half of 2022, subject to customary closing conditions, regulatory approvals and approval by stockholders of the latter.
Simultaneous with the closing of the transaction, Vici will enter into an amended and restated triple-net master lease with MGM Resorts. This will have an initial total annual rent of $860m, inclusive of MGP’s pending acquisition of MGM Springfield, and an initial term of 25 years, with three 10-year tenant renewal options.
2
Penn National Gaming entered into a definitive agreement to purchase Score Media and Gaming for approximately $2bn in cash and stock.
Under the terms of the agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, which implies a total purchase consideration of $34 per each based on a 5-day volume weighted average trading price as of July 30, 2021.
The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022.
Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares.
34
The online gambling participation rate increased by three per cent in July 2021 compared to the previous year, whilst in-person participation is down eight per cent points to 34 per cent as revealed by new data released by the UK Gambling Commission.
The findings were based on the regulator’s quarterly telephone survey conducted by Yonder Consulting. A nationally representative sample of 4,010 adults aged 16 and over were interviewed via telephone in September 2020, December 2020, March 2021 and June 2021.
The majority of the data for the year to June 2021 was collected during some element of lockdown or restricted activity level.
Responding to the new statistics, Anna Hemmings, chief executive at GamCare, emphasised that the impact from the pandemic is ‘yet unclear’ as to whether it will be short-term or long.
19
Scientific Games documented the acquisition of Sydney-based slots studio Lightning Box, as the group looks to make further progress on a quest to become “the igaming industry leader”.
The purchase was praised as a “key step forward” in Scientific Games’ aim to become a content-led sustainable growth company, and comes as it looks to “capitalise on its largest growth opportunities with a focus on digital markets”.
Following last month’s proposal to acquire the remaining 19 per cent of SciPlay that it does not currently own, the addition of Lightning Box will further boost the group’s in-house studios “with even more talented game makers”.
2.5
Caesars Entertainment lauded the strength of its regional markets, as well as a “dramatic improvement” in Las Vegas, as the group details a significant improvement in its second results when contrasted to the COVID-19 ravaged period from one year earlier.
For the second quarter ending June 30, 2021, net revenue came in at $2.5bn (2020: $127m), with net income of $71m contrasted to a loss of $100m, and same-store adjusted EBITDA finishing up at a record $1bn, a significant swing from 2020’s loss of $131m.
In the casino operator’s Las Vegas segment, Caesars has reported same-store revenue of $855m and adjusted EBITDA of $423m, with its regional section documenting revenue and adjusted EBITDA of $1.5bn (2020: $114m) and $621m (2020: -$8m), respectively.
For Caesars Digital, the group’s sports betting and online gaming segment, same-store net revenue was $117m (2020: $11m), and adjusted EBITDA at $2m (2020: $5m).
74
International Game Technology heaped praise of the “vitality of our portfolio,” after revenue through the year’s second quarter topped the $1bn barrier.
This represented a 74 per cent uptick from 2020’s $600m, as the group’s global lottery segment delivered its second-highest revenue and profit levels driven by strong player demand.
Revenue for the segment rose 58 per cent to $725m (2020: $460m), due to 35 per cent growth in same-store sales, with its global gaming section seeing revenue come in at $316m, up 12 per cent from the prior year and 19 per cent sequentially on continued recovery trends.
With global gaming returning to profitability as the group’s progressive recovery continues, IGT updates that digital and betting revenue increased 41 per cent in the quarter.
990.1
Wynn Resorts cited “significant pent up demand for travel and leisure experiences,” as the operator voiced its delight at a “strong return” for its US casino operations.
In addition, the group also detailed encouragement at the recovery of its Macau-based gaming interests, while asserting that its WynnBet online casino and sports betting entity stands poised to enter additional US regions during the coming weeks and months.
These comments come as the firm documents its performance through the year’s second quarter, which shows a significant surge in revenue to $990.1m from the $85.7m recorded during the COVID ravaged period from one year earlier.
Breaking down this figure further, each reporting segment of casino; rooms, food and beverage, and entertainment, retail and other; demonstrated significant improvements to $602.7m (2020: $9.4m); $137.7m (2020: $17.4m), $149.1m (2020: $24m), and $100.4m (2020: $34.8m) respectively.
Net loss attributable to Wynn Resorts was $131.4m compared to $637.6m from 2020, excluding the impact of $75.7m of expense related to a commitment to pay salary, tips, and benefits continuation for all of our US employees from April 1 until May 15, 2020. Adjusted Property EBITDA was $206.9m contrasted to 2020’s loss of $322.9m.
