Revenues start to recover, Wall Street bullish on casino industry
By JOSH RESNEK
Encore is revving up.
The return to 24/7 gambling hours at the casino and the reopening of the hotel led to higher revenue figures in January.
In addition, Wall Street’s bullishness on gaming stocks, and in particular Wynn Resorts, led to a respectable run.
Wynn’s stock price closed at $126 a share Tuesday, outperforming all other gaming stocks on the major exchanges.
Analysts nearly all agree – the pent-up demand to experience again the excitement of casino venues is much more to bet on in the future than the depressed earnings reports for the past year.
In other words, when the virus is finally under control, whenever that time arrives, the casinos and their hotels will once again flourish.
Figures will explode.
Profits will explode with them.
When this happens is anyone’s guess.
Many casino analysts attempt to estimate what figures will be into 2027 if you can imagine.
That is a time distance far away enough from the virus to make some assumptions about revenues when the virus is finally gone.
In addition, in Massachusetts, the State Senate is again exploring allowing Encore and others to have online professional sports betting platforms.
If such legislation passes as expected in the next six months, it is a game-changer for Encore.
Online gaming is not labor-intensive. Online gaming doesn’t require real estate investments. It is all about revenues and profits recorded digitally.
Encore is positioned to be a leader in online professional sports betting.
Back to January’s gaming figures.
Encore’s take for January 2021 was $$33,3 million as we reported last week.
This compares to December’s take of $29.2 million.
The January 2020 take was $48 million – so there is a way to go before revenues return to normal.
Despite all the difficulties imposed upon Encore by the virus and the state restrictions, the company is moving forward.
The hotel is open again. Residency is not what it used to be, but at least the hotel is open and welcoming guests.
Last week’s estimated occupancy was about 80 rooms, according to Encore employees we speak with.
“There seems to be momentum building,” an Encore employee who handles valet car parking at the front door said last week.
“It is exciting to see more people returning,” he added.