Wynn Resorts Misses Revenue Expectations, Elaine Wynn Says She’s Not Leaving Casino Giant
Posted on: May 10, 2019, 09:11h.
Last updated on: May 10, 2019, 10:28h.
Wynn Resorts failed to meet Wall Street revenue expectations in the first three months of the year. Operating revenue totaled $1.65 billion January through March – a four percent decline compared to the previous year – and short of the $1.67 billion analysts predicted.
Wynn CEO Matt Maddox blamed reduced high roller play in Macau for the shortfall. “We definitely lost some share in premium mass and the premium mass business around town was down,” the chief executive explained to investors and analysts.
I don’t know how long that that area is going to be compressed, but what I do know is the demand is still there. We feel very comfortable that when that business begins to come back, we’re going to be perfectly situated to capture it,” Maddox said.
Traded on NASDAQ, shares of Wynn Resorts have plummeted more than 30 percent over the last 12 months. The stock fell even further on the company’s Q1 report.
Wynn Resorts cofounder Elaine Wynn – who formed the casino company with her former husband Steve Wynn in 2002 – retains a nine percent ownership stake that is worth roughly $1.3 billion. She is the largest individual shareholder.
During last month’s hearings before the Massachusetts Gaming Commission (MGC) into whether Wynn Resorts remains suitable to hold a casino license in wake of the sexual misconduct allegations levied against Mr. Wynn, Elaine said she has no plans to depart the organization. “I am here because I am team Wynn,” the 77-year-old told the MGC.
The MGC concluded that Wynn Resorts can keep its coveted $85 million license and open the $2.6 billion Encore Boston Harbor integrated casino resort next month. But the state commission fined the company $35.5 million for alleged shortcomings in properly reporting claimed acts of sexual misconduct.
“In Massachusetts, we received a decision from the MGC regarding their investigation last week. Importantly, there was no impact on the suitability of the company, or its key employees to hold a gaming license in the state. And we are ready to move forward of the opening of Encore Boston Harbor,” Maddox asserted.
The MGC fined the CEO $500,000 for “his clear failure to require an investigation about a specific spa employee complaint brought to his attention.”
The world’s largest casino operators have now unveiled their first quarter performances for 2019. Las Vegas Sands leads the way with $3.65 billion in operating revenue. MGM Resorts is second ($3.2 billion), then it’s Caesars Entertainment ($2.12 billion), Wynn Resorts ($1.65 billion), Melco Resorts ($1.36 billion), and SJM Holdings ($1.1 billion).
All of the companies are jockeying to win licensure in Japan. The country will soon authorize three commercial casino resorts.
“We’re building quietly our relationships with potential partners over there. And we’re focused on various jurisdictions in Japan,” Maddox said this week. “We’re looking at this over the long term, and we will be continuing to monitor the situation and participate where we see fit.”
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