Maddox: Wynn Resorts “Well Positioned in Japan”

Matt Maddox, president and chief executive officer of Wynn Resorts, told an earnings investment call on Wednesday that his team is “very active” and “well positioned” to gain an IR license in Japan.

Maddox also revealed that the company’s IR designers are currently in Japan and working on their concepts. “We’re focused on putting forward what we think will be without a doubt the most innovative and creative project and presentation in Japan. And I think we’re well positioned there. That’s further down the road, but we are going to continue to do those things and do them at the highest level.”

The earnings call was linked to the release of Wynn Resorts’ 2018Q4 and full-year financial results.

The US-based casino operator reported full-year operating revenue of US$6.7 billion, an increase of 10.7 percent year-on-year. This was due mainly to a year-on-year surge in operating revenues at its flagship, Wynn Palace (Macau), increasing by US$727 million in the year. This was however partially offset by decreases in operating revenue of US$42.4 million and US$37.4 million from its Wynn Macau and its Las Vegas operations, respectively.

In 2018Q4, Wynn’s results largely beat consensus estimates, recording net revenue of US$1.69 billion.

Bernstein analysts noted on Thursday that Wynn Palace remains in ramp-up mode, recording a 12.8 percent increase in operating revenue reaching US$740.6 million. “Wynn Palace continues to deliver stellar performance with continued mass outperformance,” said the analysts.

It’s Las Vegas operations also saw a boost in the quarter, driven by both casino and non-casino revenue growth.

Wynn Macau however, saw a 5.2 percent decrease in operating revenues, reaching US$553.4 million. “At Wynn Peninsula, the company has been undergoing renovations and repositioning, shifting its focus from mid-tier junket VIP to premium mass side of the business and beginning a major renovation of the Encore room product. As a result, rolling chip volume at Wynn Peninsula saw year-on-year and quarter-on-quarter declines,” said Bernstein.

The operator is expected to pay a fine to the Nevada Gaming Control Board sometime this year over a sexual misconduct scandal involving its founder Steve Wynn and its former board of directors. (AGB Nippon)