Two Way Hard Three | Las Vegas Casino & Design Blog

August 1, 2005

Wynn Resorts Announces Second Quarter Results

Posted by Hunter

Wynn Resorts announced second quarter results today, including 64 days of operation of Wynn Las Vegas.

The company reported a loss of $35.2M, mostly caused by opening expenses for the resort.

In those 64 days, Wynn Las Vegas (WLV) generated $201M in revenue, or $3.14M/day. Of this revenue, gaming was $98M, or almost 50%. Slots were $34M of that, tables $62M.

ADR (average daily rate) for the hotel was $284 with occupancy rates of 90.1%.

WLV EBITDA was $58.7M, meaning margins of about 30%. Pre-opening costs were $37M.

Steve Wynn's statement follows:

"The initial response from customers and employees has been very gratifying. In our first two months of operations, we achieved outstanding revenue numbers in various departments including slots, tables and retail. We deliberately and substantially overstaffed in order to offset our expected initial disadvantages in productivity: we had more than 9,000 employees working with approximately 58 newly integrated operating systems. In the upcoming months, our main focus will be on raising margins through increased operational efficiencies."
Complete Press Release: Wynn Resorts 2nd Quarter

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Read archived comments (6 so far)
August 1, 2005 4:13 PM Posted by Hunter

As long as the press release is correct, the numbers are right.

A win of $7,117/table/day compared with $273/machine/day for the slots.

August 1, 2005 4:34 PM Posted by Mike P.

Hunter, or detroit:

Do you know if there's a source of information about individual properties at competing strip resorts? Wynn's proportional revenue from gambling is about the same as MGM's overall, but out of that they're getting a much larger percentage from table games -- last quarter MGM reported about 54% of gaming revenue came from slots.

From what I've read on other forums Wynn's not exactly endearing themselves to slot players, especially non-hotel guests.

Mike Peck

August 1, 2005 4:42 PM Posted by Hunter


Sometimes you get those numbers broken out but it's not all that common. Breaking it out like that isn't a requirement.

August 1, 2005 5:33 PM Posted by detroit1051

Mike P, I couldn't find slot revenue from MGM, but Wynn's slot win/day of $273 seems high. Does anyone know what it averages on the Strip?

The table Hold of 21% is higher than MGM reported, but they both talk about a normal range of 18-22% I believe.

It's too bad MGM doesn't break out Bellagio separately so we could compare the two. All we have is hotel:
ADR: Wynn $284; Bellagio $245.
RevPar: Wynn $255; Bellagio $237.
Occ: Wynn 90.1%; Bellagio 96.7%.

Table games win per unit per day $7,117
Table Hold 21.1%
Slot Machine win per unit per day $273

MGM doesn't break out Q2 by property, but Wynn's comps are likely a higher percentage than Bellagio's.

Imo, we need to see what happens until year-end to see how Wynn is doing. MGM has become so powerful in the high-end with Bellagio, The Mansion at MGM Grand, Mirage and now Mandalay, that Wynn has a tough road. Add to that, the fact that comped players at MGM Mirage properties can get restaurants or shows at any MGM property, it makes it all the harder for Wynn to compete.

August 2, 2005 5:01 AM Posted by A

Hey Hunter,
I don't know where to post this but I found an atricle that gives some hints of what Mgm Mirage is going to do the the mirgae.

August 2, 2005 5:28 AM Posted by detroit1051

The Las Vegas Review Journal puts Wynn's earnings in a more positive light than is found on some message boards. Even though there wasn't a conference call, Desutsche Bank's gaming analyst, Marc Falcone, said Wynn officials told anaylsts they could call with questions on the earnings.

>>"Out of the box, these are very strong earnings," said Deutsche
Bank gaming analyst Marc Falcone. "The pre-opening expenses for a
property of this magnitude were expected. When you look at the
demand during the quarter, the performance and the results were a
very positive sign."

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