By Thomas Moore (contact)Tuesday, April 25, 2017 – 4:26 p.m.
Wynn Resorts Ltd, which owns and operates the Wynn and Encore in Las Vegas as well as Wynn Macau and the Wynn Palace in Macau, reported its first-quarter financial results Tuesday.
Company: Wynn Resorts, Limited (NASDAQ: WYNN)
2017 first-quarter results
Revenue: $1.48 billion for the first quarter, compared to $997.7 million in the same quarter last year. This is an increase of 47.9 percent, or $478 million.
Net Income: $100.8 million for the first quarter, compared to a income of $75.2 million in the same quarter last year. This is an increase of $25.6 million or 34 percent.
Earnings per diluted share: $0.99, compared to earnings per share of $0.74 for the same quarter a year earlier.
Recent success of the Wynn Resorts’ Macau properties grabbed the lion’s share of attention from analysts on a conference call Tuesday to discuss 2017 first-quarter earnings at Wynn Resorts.
CEO Steve Wynn said results were positive in Macau despite ongoing construction surrounding one of the two Wynn properties there.
“Since we opened the hotel in Cotai, we’ve enjoyed had 9 percent of the market. Then it went to 13 percent and now we’re moving past 16 percent of market share,” he said. “This is despite the fact that it is still surrounded by barricades and construction.”
But Wynn also had interesting things to say about plans for the Las Vegas golf course property that stretches from the two Wynn Strip properties to Paradise Road as well as the potential of professional sports in Las Vegas.
After internal discussions, Wynn said the company has revised some of its plans to implement a more “conservative but dynamic” approach.
The lagoon and its attractions will still be built, Wynn said, but plans for a hotel tower will be shelved for the moment.
The lagoon and other attractions on the property will be used to “power up existing meeting and catering operations,” Wynn said. That should, he said, generate an absolute certain return on investment of 10 to 15 percent.”
The changes will mean the addition of beachfront meeting space and ballrooms that will meet the convention needs of the existing properties, he said.
Wynn said there are no plans to add exhibit space because the Sands and the Las Vegas Convention Center have that part of the meeting business covered.
He also said that the planned improvements would “create a tremendous uptick in the value of the surrounding real estate.” In past earnings calls, Wynn has mentioned opening up some of the land on Paradise Road to other operators.
Wynn said he expects construction on the lagoon to start in six to seven months, and the project should be completed a year or so after that.
The impact of the Raiders and an NFL stadium on the golf course project and the other Wynn Las Vegas properties prompted another question.
Having a football team in Las Vegas is like adding strings or percussion to a symphony orchestra, Wynn said, and he added that the city will be an amazing place to be during football season.
“Everybody is thinking that having NFL games in Las Vegas is going to light this town up,” he said. “The Super Bowl now, without the game actually being here, is almost as big as New Year’s in this town.
“With the Super Bowl actually here, and the Super Bowl will be here more than once, this place will go bonkers,” Wynn said.