- Q2 earnings up by 44.5% for Wynn Resorts Ltd.
- Steve Wynn tells investors construction is ‘frustrating’
Second quarter revenue figures for Wynn Resorts Ltd. have revealed a significant rise in revenues, which can be attributed in part to the success of the brand’s Macau operations.
Projections for the period suggested income of $1.45 billion for the global casino operator, but the true figure came in at an even higher $1.53 billion. Revenues for Macau’s Wynn Palace account for more than one quarter of this total.
The Las Vegas Review-Journal reports that CEO Steve Wynn told investors their profits could have been even higher, were it not for the obstacles faced at Wynn Palace from nearby construction work.
Bumper year for Macau profits sees share prices rise
Macau’s gambling market is growing, especially across the VIP sector. VIP casinos accounted for 57% of this year’s total gaming revenues, and the sector itself has grown by 34.8% year-on-year.
This sudden rise in profits has seen share prices increase across some of the world’s leading casino brands, many of whom operate within Macau. Indeed, the average price increase across the stocks of the three major players – MGM Resorts, Wynn Resorts and Las Vegas Sands – increased by 3% over the first half of 2017.
Construction harms footfall, Wynn tells investors
Wynn Palace has certainly encountered a few setbacks since it opened in Macau last summer. Despite an impressive set of figures being published by the casino operator, it has not yet achieved the levels of footfall hoped, and CEO Steve Wynn attributes this to the ongoing building works happening around the casino site, calling the construction “frustrating” during a conference call with investors this week.
One of those projects is a gondola station and pedestrian bridge, which will provide better access to the casino resort once completed. The other ongoing works are the MGM Resorts’ Cotai new build, and SJM Holdings’ development of a new Stanley Ho hotel – which Wynn Palace hopes to be connected to, via an access corridor. Once completed, these various works will bring new life to the district which Wynn Palace occupies – but for now, the projects continue to hinder footfall at the casino itself.
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