QUOTE AND NEWS
Forbes  Dec 6  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Wynn Resorts Ltd (NASD: WYNN), where a total volume of 15,798 contracts has been traded thus far today, a contract volume which is...
Forbes  Dec 6  Comment 
In early trading on Tuesday, shares of Wynn Resorts (WYNN) topped the list of the day's best performing components of the S&P 500 index, trading up 3.0%. Year to date, Wynn Resorts registers a 46.4% gain. And the worst performing S&P 500 component...
Motley Fool  Dec 1  Comment 
With Macau looking stronger, which of these casino stocks will be the winner?
Forbes  Nov 29  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Aetna Inc. (NYSE: AET), where a total volume of 17,652 contracts has been traded thus far today, a contract volume which is...
Motley Fool  Nov 29  Comment 
One of the biggest names in Las Vegas is also the worst gaming stock on the market this year.
Motley Fool  Nov 23  Comment 
Wynn Palace is currently underperforming neighbors by some metrics, but that may not last long.
Forbes  Nov 22  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Medtronic PLC (NYSE: MDT), where a total volume of 47,441 contracts has been traded thus far today, a contract volume which is...
Forbes  Nov 22  Comment 
In recent trading, shares of Wynn Resorts Ltd (NASD: WYNN) have crossed above the average analyst 12-month target price of $97.08, changing hands for $97.38/share. When a stock reaches the target an analyst has set, the analyst logically has two...
Motley Fool  Nov 19  Comment 
Despite getting off to a fast start, the luxury casino operator is finding the going more difficult than expected.




 

Wynn Resorts, Limited (NASDAQ: WYNN) develops and operates luxury casino resorts. The company serves Las Vegas, Nevada and Macau, China. In Las Vegas, the company owns the Wynn Las Vegas and Wynn Las Vegas Encore properties while in Macau, the company owns Wynn Macau and Wynn Macau Encore.[1] All of these properties are marketed as luxury resorts[2] and, in Las Vegas, WYNN likes to position its resorts as the most expensive in the city.[3] In 2010, the company earned $4.18 billion in revenue and $316 million in net income.

Company Overview

Business Segments[4]

  • Las Vegas (31% of total revenue, 70% of assets, 57% of costs)
  • Wynn Macau (69% of total revenue, 30% of assets, 43% of costs)

Business Growth[5]

Fiscal Year ended December 31, 2010

  • Revenue increased to $4.18 billion from $3.05 billion in 2009.
  • Net income increased to $316 million from $39.1 million in 2009.

Trends and Forces

Wynn has big exposure to the Macau gaming market

Due to the company's big investments in Macau, the company is both receptive of booms in the emerging markets and susceptible to the busts.The Macau gaming market is largely dependent on the Chinese market and economy. If the market worsens as it had in the 2008-2010 recession, Wynn Resorts could see its bottom line affected accordingly.

Wynn insists on keeping full-time staff employed

During downturns, Wynn's plan is to preserve employment includes pay cuts, reduced work weeks for its employees and suspend 401(k) matching. CEO Steve Wynn believes that eliminating job security worries amongst its employees is paramount to maintaining strong human capital, a driver of the consumer's experience at any Wynn casinos.[6]

Government Regulation and Gaming Laws

Macao's gaming laws and gaming taxes are relatively young and have few precedents, making them quite vulnerable to sudden change. China has a large and affluent middle class, but for many years travel and currency restrictions made it difficult and undesirable for visitors to come to Macao. While the Chinese government relaxed many of these restrictions when it first granted gaming licenses and ended its state-run gaming monopoly, there is no sign that this deregulation trend will continue.[7]

Competition

Wynn Resorts faces intense competition in both Las Vegas and Macau. The company’s primary competitors include Las Vegas Sands and MGM Mirage, both of which operate in the Las Vegas and Macau markets. Wynn Resorts also faces competition from privately-held Harrah’s Entertainment, Boyd Gaming, and Native American casinos.

  • Las Vegas Sands: Like Wynn, LVS has properties in Las Vegas, Macau, Bethlehem in Pennsylvania and Singapore.[8]
  • MGM Mirage: Operates casino resorts, golf courses, and golf clubs in the United States. MGM has a strategic alliance with the Mashantucket Pequot Tribal Nation, owner of Foxwoods Casino Resort in Ledyard, Connecticut.
  • Boyd Gaming: Owns and operates casinos in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey in addition to pari-mutuel jai alai facility in Florida, two travel agencies, and an insurance company.
  • Harrah's Entertainment: A gaming company that owns and operates under the Harrah's, Caesars and Horseshoe brand names.[9] It also owns the London Clubs International family of casinos and the World Series of Poker.

References

  1. Wikinvest SEC Filings: 2010 10-K WYNN, Page 3
  2. John Dobosz (February 26, 2009). Going All In For Wynn. Forbes.
  3. Oskar Garcia (February 20, 2009). Wynn Resorts to post 4Q earnings on Tuesday. Forbes.
  4. Wikinvest SEC Files: 2010 10-K WYNN, Page 102-103
  5. Wikinvest SEC Files: 2010 10-K WYNN, Item 6: Selected Financial Data
  6. Wynn Resorts Ltd. Q3 2008 Earnings Call Transcript. Seeking Alpha (October 30, 2008).
  7. MacauCasinoWorld.com: History.
  8. Wikinvest: Las Vegas Sands
  9. Corporate Profile. Harrah's Entertainment.


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