Wynn Resorts just reported their results.
That's the press release. I'll update this with some thoughts as soon as I have a chance.
Categories: Business of Gaming, Las Vegas Strip, Wynn Resorts
Tags: lasvegas, vegas, wynn, wynnlasvegas, wynnresorts
Sounds like we are back to a 2008 opening of Encore. Interesting. Also sounds to me like they might be hinting at making Cotai a bit larger than they have stated in the past.
Basically Steve shorted his own stock, that's a different approach, but I can see why they did it, and it put money in my pocket, so I won't complain.
Wynn LV and Macau, both look fine with the numbers. I don't see anything out of line. Wynn's balance sheet also looks great.
Looks like a miss.
Pretty much the same. Unless you're one of those "GROWTH GROWTH GROWTH" people, there's nothing too offensive here.
Should be interesting to see where this company stands when the blood really starts flowing on the Strip in the near-future.
I still think "Wynn Diamond Suites" sounds like the name of a motel on Boulder Highway.
David: Pay by NIGHTLY, WEEKLY, or MONTHLY! Free HBO!
Its only my two cents, but last month when I was in Macau I saw the Wynn Macau "dramatic front feature attraction in the rotunda area featuring a gold "prosperity tree" emerging from the floor" and it was pretty lame. In fact my old man and I wondered why there were so many mainland Chinese standing around - we thought there might have been a fight or something going on. I'll see if I can take a picture this weekend when I go back.
I agree with the quote that "...folks just feel less wealthy...". I think it's doubtful that slot revenue declined because of the closings of Stardust and New Frontier. I don't believe the customers of those casinos played much at Wynn. This is anecdotal, but a friend in Detroit told me she and her friends, who always stay at Harrah's or Flamingo, don't play slots at Wynn because they feel intimidated by the opulence of the place. It may not make sense, but there may be more with similar views. I do think foot traffic from Palazzo/Venetian will help Wynn now that LVS'construction is done.
"Daily slot machine revenue at the Wynn Las Vegas fell 5.6 percent to $241 per unit, a decline the company attributed to a drop in foot traffic because of the closing of the neighboring Stardust and New Frontier casinos. Gamblers may also be making fewer trips to Las Vegas and wagering less as the U.S. economy loses jobs and the housing market contracts.
``I think the U.S. economy is having an impact on the gaming industry,'' said Craig Parmalee, a credit analyst with Standard & Poor's in New York. ``Folks just feel less wealthy, and to some degree that affects even the wealthiest. Maybe they gamble $1 million instead of $3 million.''
If Hunter can help me upload it, I believe I still have a PDF of a Majestic Research report that attributes diminished play at Wynn to Venetian and Palazzo.
LV Sun: "Wynn Las Vegas has lost a billion dollars of its market worth since Tuesday afternoon, when casino boss Steve Wynn, in spite of fairly upbeat earnings at his company, warned investors that the Strip won�t be immune from an economic slowdown.
Wynn Resorts shares lost more than 7 percent of their value while most other gaming stocks traded higher today."
WYNN is still at about $111 right now, which is nothing to sneeze at since this time last year there were skeptics saying it wouldn't meet $100. I don't think these companies are great investments but Wynn is at least being a realist. Admittedly if he's wrong he's making money and if he's right he can say he was right, but as a skeptic in regards to the Strip's future, something other than endless sunny optimism right now makes me more confident that Steve is becoming a smarter business operator.
I've heard that Station properties are having cutbacks with layoffs. Sunset Station has closed Costa del Sol restaurant and other restaurant employees have also been laid off. Have any locals noticed changes?
Related to the economy, Reuters had a piece today entitled, "Las Vegas May Not Be Immune to Economy".
No matter how "opulent" Wynn's casino is, he can't get past the fact that it isn't Center strip. Encore is even further North. That surrounding area isn't being developed quicky enough to be the new center.
Both Venetian and Wynn have a problem in that their poor locations don't high their high rates and minimums. Obviously, location becomes more of an issue during a recession.
Harrahs, I'd say, is probably the least threatened since all of its Vegas properties are well-located in the center.
It's interesting that a slowdown in Vegas would still be considered boom times in any other city. A new Intercontinental Hotel is about to open here in San Francisco and in an article it says that hoteliers are pleased with occupancy rates in the city lately averaging 70-80%, up from the low 60's during the dot com crash. But, in Steve Friess' interview with Adelson he said they start to worry about occupancy rates when it drops below 98%. I guess it's all relative.
Detroit: It's been a month or more since I last ate at a Station. I've found that even at Red Rock service is pretty lousy at the cafe/buffet level anyway, so as far as I care they could probably chop their numbers down a bit and service would stay the same or maybe improve since it would be less employees talking to each other avoiding the eye contact of the customer.
I was told Green Valley Ranch put some or all dealers on three day weeks which will affect benefits. Private Equity changes things.
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