Wynn Resorts Earnings

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Wynn Resorts Limited is a publicly traded corporation based in Paradise, Nevada that is a developer and operator of high end hotels and casinos. It was formed on October 25, 2002, by former Mirage Resorts Chairman and CEO Stephen A. Wynn. As of 2016, the Company has developed five properties.


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History

In 2000, Steve Wynn agreed to sell Mirage Resorts to MGM Grand in a hostile takeover, after having led Mirage and its predecessors since 1973. Wynn laid the foundation for his next venture that same year, buying the Desert Inn for $270 million.

Wynn found an early partner in Japanese billionaire Kazuo Okada of Universal Entertainment Corporation. Wynn, together with Universal subsidiary Aruze USA, controlled almost half the stock, making it harder for outside investors to exert control, as they had done at Mirage in response to Wynn's prolific spending.

Wynn hired investment banker Ronald Kramer as president and director in 2002 in order to help take the company public and oversee its expansion.

Wynn Resorts made its initial public offering on NASDAQ on October 25, 2002.

The company's first project, Wynn Las Vegas, opened on April 28, 2005.

Wynn Macau, the company's second project started construction on June 28, 2004. It opened September 5, 2006.

Encore, an extension to Wynn Las Vegas, broke ground on April 28, 2006, the first anniversary of the opening of Wynn Las Vegas. Steve Wynn announced a planned redevelopment of the golf course at Wynn Las Vegas, called Wynn Golf and Country Club, into two separate resorts, and a large lake, connected by the "Wynn Parkway". Redevelopment will not take place before 2009.

Encore at Wynn Macau, the company's second project in Macau Peninsula, Macau, People's Republic of China, opened on April 21, 2010.

Wynn bought 52 acres (21 ha) of the Cotai Strip in Macau where he hopes to break ground in 2012 for Wynn Cotai for a 2013 or early 2014 opening.

The company considered opening a casino as part of the Entertainment City development in the Philippines, but decided against it because of corruption in the country's gaming industry. Okada decided to proceed with the project alone, leading to the rupture of his partnership with Wynn.

The dispute went public with reciprocal accusations of corrupt practices. Wynn and his allies accused Okada of bribing Philippines gaming regulators with over $110,000 in benefits, including free nights in a luxury suite at Wynn Las Vegas, while Okada questioned the propriety of Wynn Resorts' record $135 million donation to the University of Macau. Okada resigned as vice chairman in October 2011, and the following February, after a company investigation by the Freeh Group confirmed the charges against him, the board of directors forced Aruze USA to sell back its shares at a nearly 30% discount. Aruze had been the company's largest shareholder, with a 19.7% stake.

On September 17, 2014, the Massachusetts Gaming Commission voted to approve Wynn Resorts' proposed $1.6 billion casino to be located in Everett, Massachusetts, just north of Boston.


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Effect of the recession on Las Vegas and Macau operations

In Las Vegas, the 1st quarter of 2009 was the first where the Encore was fully operational after its opening on December 22, 2008. The prior year quarter includes only Wynn Las Vegas. Overall revenue from the resort increased from $327.2 to $345.9 in the first quarter, a very modest increase considering the additional hotel tower and new food and beverage outlets.

Despite the additional casino at the Encore (which added 97 tables and 857 slot machines to the original 190 tables and 2000 slots) net casino revenues for the combined resort were lower than the first quarter of 2008 when only The Wynn was operating. Net casino revenues for the combined resort dropped from $125.1 million to $117.5 million.

Gross non-casino revenues for the quarter were $228.4 million, a 13.3% increase from the first quarter of 2008, driven primarily by higher hotel and food and beverage revenues resulting from the opening of Encore. Although the added 2,034 suites at Encore nearly doubled the suites in the property hotel revenues were up only 20.6% to $85.1 million during the quarter, versus $70.6 million in the first quarter of 2008 due to declining room rates and lower occupancy rate. Food and beverage revenues increased as a result of the additional 12 food and beverage outlets located in the Encore expansion. Retail revenues declined and entertainment revenues also decreased primarily due to the closure of the Spamalot production show in July 2008.

In the first quarter of 2009, net revenues of the Macau operations declined to $448.7 million compared $491.5 million in the first quarter of 2008. Gaming on the VIP tables declined drastically.


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Sources

  • Las Vegas Sun

Source of the article : Wikipedia



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