Two Way Hard Three | Las Vegas Casino & Design Blog

August 6, 2007

UPDATED: WYNN Earnings 2nd Quarter '07 & New Blush Club

Posted by detroit1051

WYNN will release its Q2 earnings shortly, so we'll start a new topic now. In the meantime, Wynn has issed a press release announcing the opening of Blush on Labor Day weekend:
"Blush offers a unique option to the Las Vegas scene as the club seamlessly transforms from elegant lounge to high-energy nightclub."
Formerly the location of Lure, the venue will undergo a complete remodel under the direction of Wynn's Executive Vice President of Design Roger Thomas. The 4,500 square-foot club will feature a lit onyx dance floor and cr�me lantern ceiling sculpture. This central art focal piece will create various hues and images that enhance the vibe and atmosphere as the display literally comes alive nightly."

Las Vegas Nightlife Redefined with Blush

Updated: The earnings are in and they are pretty impressive. Check here.


Read archived comments (8 so far)
August 6, 2007 1:18 PM Posted by Brian Fey

Home Run Baby! We knocked it out of the freaking park! The stock kissed $121 in after hours trading. $118's currenty...

Didn't somebody say this stock would never see $100 again. I think they are right. Its up from here! :)

August 6, 2007 1:41 PM Posted by detroit1051

$.82 EPS compared to last year's $.20 loss. Both Las Vegas and Macau were huge. The consensus of 14 analysts for the Quarter was $.53. Very strong performance. The Earnings Release Hunter just updated here shows strength in every category.

August 6, 2007 4:12 PM Posted by detroit1051

I took some notes during the WYNN Call; no guarantees I got everything. It was suprising that Steve let Ron Kramer handle much of the Call. Usually, Steve is a one man show.

Ron Kramer, Wynn Resorts President, said how incredibly proud they were of the 2nd Quarter in which Wynn Las Vegas and Wynn Macau had record performance.
CEO Steve Wynn reported that in both properties, Wynn's appeal to top-end customers and superior service resulted in players and guests playing longer and staying longer, utilizing not only the casino but retail and restaurants as well.

Every segment increased over the same period last year because "...investment in the brand clearly resonates with high-spending customers."
Results are due to both taking market share from others and in attracting first-time Asian visitors to Las Vegas who have experienced Wynn Macau.
Encore, which will open in early 2009, is a $2 Billion all-suite property, similar to Macau's Diamond Suites currently being developed. Steve Wynn said he does not plan to build hotel rooms in the future, only suite properties.
Golf course development is under study, but the land continues to hold its value and appreciate in its current form. When decisions are made, the first project will be across from the LV Convention Center at Paradise and Desert Inn. With Wynn's brand, it's not necessary to build four or five hotels on the property, Wynn said.
Kramer and Wynn pointed out that Wynn Las Vegas' strong performance is in spite of the fact that the property is currently "an island with no walk-in business". Steve Wynn was enthusiastic about other development adjacent to and near Wynn Las Vegas and Encore, "The high-end neighborhood in Vegas will be north of Spring Mountain Road", and he specifically identified the Plaza Hotel, Echelon, Trump Towers and Palazzo as major catalysts for the area. The new Barney's store at Palazzo will be beneficial for Wynn's retail, Wynn said.

Wynn Macau's first expansion will open in September '07 with an additional 20,000 sq ft of casino space and a restaurant which will be followed with more retail and restaurants opening before Chinese New Year 2008.
Diamond Suites will include 400 suites and villas and additional VIP gaming areas. Scheduled opening is 2010.
Steve Wynn said that they are comfortable with the Table Hold percentage range of 2.7-3%, and they are learning as they gain experience in the Macau market. He noted that Venetian Macau will have twice as much VIP space, but that Wynn's three junket operators are happy with Wynn and that Wynn Macau is the property of choice.
75% of VIP business comes from junket operators, the remaining 25% from in-house.
Macau is an evolutionary market. Visitation will increase as the infrastructure grows. As that happens, non-gaming revenue will increase, but Steve Wynn cautioned it will not get to a 50/50 gaming/non-gaming mix soon because the market has more day-trippers and shorter stays for overnight guests than in Las Vegas. Wynn likened Macau's current profile to that of Atlantic City.
Macau's strong slot performance is similar to Wynn Las Vegas in that revenue goes up when players stay longer. Wynn's properties make people want to stay longer.
Visa restrictions into Macau are still a concern but did not affect 2nd Quarter performance. Additional restrictions are due in August and later this year.
In response to a question on Kazuo Okada's opinion on Japan, Steve Wynn declined to comment at this time.

August 6, 2007 5:35 PM Posted by Mike T

$687.5 million in revenue from two hotels. I don't really know what to say.

August 6, 2007 6:13 PM Posted by Brian Fey

I have not had time to go over the numbers with a fine toothed comb, but I plan on it later tonight, but actually, the Las Vegas numbers he put up, were really even more impressive than those in Macau, from the quick glance I had.

I think it was odd also, that Wynn did not have the main opening comments like he normally does.

August 7, 2007 12:17 PM Posted by detroit1051

Read the first item in Eye on Vegas. Brian, did you write it? LOL.

August 8, 2007 1:06 PM Posted by Molly


I don't know what his main comments normally are but Friday he looked very sick.

Maybe he still wasn't feeling well on Monday.

Just a thought.


August 14, 2007 12:59 PM Posted by david Slavin

Wonderful performance. Those of us who appreciate what Steve brings to vegas-namely class-are extremely happy for him and proud of what he's done with the Wynn. The empire is back!