This could spell trouble for UFC, or does UFC pick up the slack?

[SinCitysmallGUY]

Station Casinos Announces Third Quarter Results
November 11, 2008
Station Casinos, Inc. recently announced the results of its operations for the third quarter ended September 30, 2008. Here is a summary of the results for the company for the Quarter:

-For the third quarter, the Company reported a net loss of $23.4 million as compared to net income of $3.7 million in the prior year’s third quarter.

-Net revenues for the third quarter saw a decrease of 10% compared to the prior year’s third quarter.

-Adjusted EBITDA for the quarter had a decrease of 13% compared to the prior year’s third quarter.

-Green Valley Ranch, just outside of Vegas, generated Adjusted EBITDA before management fees of $19.7 million, a decrease of 22% compared to the same period in the prior year.

-The Major Las Vegas Operations reported a net loss of $5.7 million for the third quarter as compared to net income of $17.8 million in the same period in the prior year.

At this point they seem to be looking for a bottoming out of the market so that things my pick up again, but the economic free fall gives them no relief in sight. They are probably looking at at least two more quarters of diminished performance due to the economy, possibly more. The performance of Station isn’t as closely tied to the Zuffa/UFC as in the past, but it is of interest to those that follow the sport. The excellent performance of Station in the ’90s and over the first half of the decade provided the Fertitta brothers a cash flush situation that allowed the underwriting of a fight promotion that lost upwards of forty million dollars.

[Thin Lizzy]

You can't tell. I read the entire release. There's no mention of the UFC as a separate revenue stream. That said, I'm sure the Fertittas will be cutting costs in all areas of their operations. As I said in another thread, don't expect fighters to be getting raises anytime soon.

Vegas is simply in for a world of hurt. The casinos are already losing money and the recession has just started. The Fertittas cater to more of a local crowd, many of whom have just watched their home equity evaporate because of the massive housing bust.


Note the bolded part:



Las Vegas Market Results

For the third quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch, were $286.6 million, an 11% decrease compared to the prior year’s third quarter, while Adjusted EBITDA from those operations decreased 15% to $90.5 million. The Major Las Vegas Operations reported a net loss of $5.7 million for the third quarter as compared to net income of $17.8 million in the same period in the prior year. “The decline in revenues for the Major Las Vegas Operations accelerated during the course of the third quarter, and we experienced revenue declines at those properties in October that were in excess of third quarter levels. The market continues to be very challenging and it is unclear as to when it may improve,” said Thomas M. Friel, Chief Accounting Officer and Treasurer.

[SinCitysmallGUY]

You can't tell. I read the entire release. There's no mention of the UFC as a separate revenue stream. That said, I'm sure the Fertittas will be cutting costs in all areas of their operations. As I said in another thread, don't expect fighters to be getting raises anytime soon.

Vegas is simply in for a world of hurt. The casinos are already losing money and the recession has just started. The Fertittas cater to more of a local crowd, many of whom have just watched their home equity evaporate because of the massive housing bust.


Note the bolded part:



Las Vegas Market Results

For the third quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch, were $286.6 million, an 11% decrease compared to the prior year’s third quarter, while Adjusted EBITDA from those operations decreased 15% to $90.5 million. The Major Las Vegas Operations reported a net loss of $5.7 million for the third quarter as compared to net income of $17.8 million in the same period in the prior year. “The decline in revenues for the Major Las Vegas Operations accelerated during the course of the third quarter, and we experienced revenue declines at those properties in October that were in excess of third quarter levels. The market continues to be very challenging and it is unclear as to when it may improve,” said Thomas M. Friel, Chief Accounting Officer and Treasurer.

Just moved out of Vegas 2 years ago and looking at moving back. CHEAP HOUSES! I just need to sell the one I have now. The Stations are more geared to locals, but those are the people still spending money. At least in my opinion, but when we went back in Sept. The casino's were still full and drinks and money were seen everywhere.

[Thin Lizzy]

Bulldog was just in Vegas and paints a different picture.

You got that right.  I just got back from LV, and this was the SMALLEST SEMA show I have been to.  The strip is DEAD.  I loved it, but it can't be good for the hotels/casinos. 

If you do manage to sell your place, you'd probably be better off renting in Vegas for a year or so and then buying, as prices are almost certain to come down even more.

[SinCitysmallGUY]

Bulldog was just in Vegas and paints a different picture.

If you do manage to sell your place, you'd probably be better off renting in Vegas for a year or so and then buying, as prices are almost certain to come down even more.

My sister in law is a bartender in the high stakes at NY NY and she has been making upwards of 700 on a good  night with 300 still being a bad night.. Yeah she bought last year and paid 272K for her place now the houses down the street are going for 150K.

[onlyme]

Station Casinos Announces Third Quarter Results
November 11, 2008
Station Casinos, Inc. recently announced the results of its operations for the third quarter ended September 30, 2008. Here is a summary of the results for the company for the Quarter:

-For the third quarter, the Company reported a net loss of $23.4 million as compared to net income of $3.7 million in the prior year’s third quarter.

-Net revenues for the third quarter saw a decrease of 10% compared to the prior year’s third quarter.

-Adjusted EBITDA for the quarter had a decrease of 13% compared to the prior year’s third quarter.

-Green Valley Ranch, just outside of Vegas, generated Adjusted EBITDA before management fees of $19.7 million, a decrease of 22% compared to the same period in the prior year.

-The Major Las Vegas Operations reported a net loss of $5.7 million for the third quarter as compared to net income of $17.8 million in the same period in the prior year.

At this point they seem to be looking for a bottoming out of the market so that things my pick up again, but the economic free fall gives them no relief in sight. They are probably looking at at least two more quarters of diminished performance due to the economy, possibly more. The performance of Station isn’t as closely tied to the Zuffa/UFC as in the past, but it is of interest to those that follow the sport. The excellent performance of Station in the ’90s and over the first half of the decade provided the Fertitta brothers a cash flush situation that allowed the underwriting of a fight promotion that lost upwards of forty million dollars.

Station Casinos just open (yesterday) a new casino n North vegas called Alliante.

[onlyme]

Just moved out of Vegas 2 years ago and looking at moving back. CHEAP HOUSES! I just need to sell the one I have now. The Stations are more geared to locals, but those are the people still spending money. At least in my opinion, but when we went back in Sept. The casino's were still full and drinks and money were seen everywhere.

They are having a government auction on foreclosed homes on the 22nd of November in Vegas.  They have over 300 homes being auctioned.  great time to pick up a deal. 

[Thin Lizzy]

My sister in law is a bartender in the high stakes at NY NY and she has been making upwards of 700 on a good  night with 300 still being a bad night.. Yeah she bought last year and paid 272K for her place now the houses down the street are going for 150K.

Is NY NY a Wynn Hotel? His properties are doing the best as he caters to a high-end clientele. MGM and Sands are getting killed. Stocks don't go down 90% for nothing.

It's the middle class that's staying away from Vegas, and this isn't likely to change in the near future. Your sister-in-law's housing situation is all too common in Vegas. During the housing boom, you had housekeepers getting 250K loans. That's over. Most of those people will end up walking away from their mortgage as there's no point in paying off 250K+  on a house that's only worth 100K.


Keith,

I've heard from a pretty reliable source that there are actual ghost towns outside of Vegas, with miles and miles of empty houses and condos.

Have you seen this?

[americanbulldog]

I was just there, at the NHRA AC Delco Nationals (and there was a big rodeo that weekend as well), then SEMA (lowest attendance, and least amount of exhibitors in the last five years) and it was the least busy I have seen it in a long time.  The strip was actually nice to navigate, and Ceasars was kind of empty on a Sunday?  (relatively speaking)