Wynn CEO bullish on Macau, Boston, Japan despite stock beating

Wynn Resorts Ltd. was among the pack of casino companies whose shares fell Wednesday, even though its second-quarter revenue and earnings improved.

Shares fell more than 7 percent to under $155 in heavy trading after Wynn said revenue for its Macau properties gained 9 percent, which was less than what analysts expected.

Wynn CEO Matt Maddox announced new investments in Macau and said it expects mediocre third-quarter results in Las Vegas. He also offered an upbeat look at the company’s presence in Boston and its outlook in Japan.

A similar announcement by Caesars Entertainment Corp. earlier in the day resulted in the industrywide share slide, which also affected MGM Resorts International.

But Maddox was undaunted in his bullishness for Macau.

“I believe that Wynn Palace will continue to take market share in both mass (market customers) and VIP,” he said. “In fact, I’m so confident that I’ve assembled a team of the most creative people on the planet, and we’re in full swing planning our entertainment-focused development on the adjacent seven-acre parcel that fits between the new Lisboa (Palace, operated by the Stanley Ho family) and Wynn Palace.”

Maddox shrugged off the weaker-than-expected Macau results, saying they were typical for the market in the second quarter and that traditional visitors were distracted by the World Cup soccer tournament.

In a call with investors, Maddox described what’s ahead at Wynn Palace.

“The project is going to have indoor gardens. It’s going to have waterfalls. We’re working on a theater concept and a new food hall that’s going to focus on seafood, the best seafood anyone can find in that region, and it will be a culinary destination for Macau,” he said. “We know that our premium customers like these attractions.”

He said the proposals would be shown to Macau government leaders in the fourth quarter.

“The entertainment center will have various whimsical, immersive features taking into account what we’ve learned from our Prosperity Tree in Macau and the Lake of Dreams here in Las Vegas and amplifying it.”

No to price decreases

Maddox said the company refused to lower its room, show and other prices in Macau, as competitors have done.

“We are not going to compete on price by raising commissions or extending additional credit for short-term revenue gains,” Maddox said. “We compete by having the best product and service in the market.”

He said the upcoming capital investment in Macau properties would include the renovation of all rooms and suites at the Macau Encore property that opened eight years ago.

“We’re building two new restaurants in our original casino, adding 8,000 square feet of additional retail space which, by the way, still remains the world’s best and strongest-producing sales per square foot anywhere to be found.”

Maddox projected a rough third quarter in Las Vegas, primarily because it will be compared with a period in which the city hosted the huge Floyd Mayweather-Conor McGregor boxing match.

He said work is continuing on the company’s 400,000-square-foot convention facility on the former Wynn Golf Club course.

“I changed this project significantly from a $3-plus billion investment with a theme-park focus to a more luxury resort experience,” he said. “It’s early in the design stage, and we’ll continue to work on the master plan for the rest of the year.”

Boston and Japan

Maddox also acknowledged progress in the company’s Boston Harbor project, scheduled to open in less than a year, and the bid to win a concession to build a resort in Japan.

“The quality of the construction is some of the best we’ve ever experienced,” Wynn said of the Boston project where 1,600 workers are onsite. “We’re actually ready to start laying carpet on the first floor of the hotel tower within the next couple of weeks. We’ve installed lush landscaping around the site, and we’ve renovated the polluted river bank into a living shoreline and it’s connected by nearly two miles of boardwalk. The site is transforming into a destination resort.”

Maddox anticipates the company will be a major competitor in Japan.

“We have been quietly active in Japan for a number of years now. I’ve been dozens of times myself, building strong relationships in a country where trust and relationships matter,” he said. “We believe that the Wynn aesthetic and our unrelenting focus on excellence and our commitment to thoughtful, immersive entertainment will resonate well in Japan, and we look forward to competing there.”

For the quarter that ended June 30, the company reported net income of $155.8 million on revenue of $1.605 billion.

Wynn shares closed the regular session at $159.98.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

ad-high_impact_4
Business
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like