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Wynn Macau revenue surges in January and February as CEO Maddox spruiks company makeover

Friday, 09 March 2018 04:40
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Wynn Macau has shrugged off any potential ill-effects from the sexual misconduct allegations surrounding founder Steve Wynn with new CEO Matt Maddox revealing a 28% year-on-year surge in revenue for the first two months of the year, comfortably exceeding original estimates.

In an unusual and no doubt strategically timed announcement of Wynn Resorts’ financial results for January and February, Maddox declared net revenue across the company’s Macau properties for the period of US$855 million including US$418.1 million on the peninsula and US$437.2 million at Wynn Palace. Adjusted Property EBITDA soared 51% year-on-year to US$281 million.

Wynn Macau proved particularly strong during the period in mass, with mass market gross gaming revenue (GGR) increasing 47% year-on-year and 15% quarter-on-quarter to US$435.6 million including an 80% rise in mass revenue at Wynn Palace to US$242 million. VIP turnover grew 34.3% to US$21.1 billion.

Wynn Las Vegas generated revenue of US$271.1 million and Property EBITDA of US$116.1 million, down 11%, with low hold impacting the bottom line given that table drop grew 10%.

Wynn Resorts announced a quarterly dividend of US$0.75, representing a 50% increase on the previous dividend of US$0.50 in a gesture described by Deutsche Bank as “symbolic.”

“We believe the dividend increase is more symbolic than anything else and speaks to two key topics: 1) we think it shows management confidence in the pending litigation and 2) we believe it signals a less robust development effort,” Duetsche Bank analysts said.

“We believe Wynn is likely to complete its convention space at Paradise Park and move to Wynn West, leaving the Paradise Park hotel and lagoon project for further consideration.”

Quick to spruik Wynn Resorts’ efforts to move on from the departure of founder Steve Wynn, who stood down from his role as Chairman and CEO on 5 February, Maddox said the board was currently undergoing a makeover.

“Our board has been extremely active over the past month and has announces it intention of expand and refresh its ranks to bring new prospects to the boardroom,” he said.

“We recently announced the retirement of Irani from our board and Al Shoemaker has informed that he will not run for reelection in 2019. I personally would like to thank them both for the service to the company and to the shareholders.

“As for new members, the board engaged with numerous candidates and we look forward to telling you more as they make progress on this front. Over the past several weeks, I spent a lot of time meeting with our employees and I’m always impressed by their dedications and professionalism

“It is our 25,000 employees who are responsible for delivering customer experiences that have earned us more Forbes to 5 stars more than any independent hotel company in the world.

“I am really excited for the future of Wynn resorts.”

 

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