An overview: Wynn Resorts and its business segments

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Nov. 27 2019, Updated 7:06 p.m. ET

Wynn Resorts

Established in June 2002 and based in Nevada, Wynn Resorts (WYNN) is a leading developer, owner, and operator of destination casino resorts. It was founded by Wynn’s Chairman and CEO, Stephen A. Wynn. Wynn Resorts is traded on the NASDAQ Global Select Market under the ticker symbol WYNN and is part of the Consumer Discretionary Select Sector Standard and Poor’s depositary receipt (or SPDR) exchange-traded fund (or ETF) (XLY).

Part 1

Business segments

Wynn Resorts (WYNN) operates Wynn Macau, a casino hotel resort in Macau, China, and Wynn Las Vegas, a luxury resort casino on the Las Vegas Strip.

The above chart depicts the breakdown of the company’s revenue for the four quarters ended September 30, 2014. Wynn Macau accounts for 72% of sales, while the remaining 28% go to Wynn Las Vegas.

Casino companies such as Las Vegas Sands (LVS), MGM Resorts (MGM), and Melco Crown Entertainment (MPEL) also derive a significant portion of their revenues from their Macau operations.

Recent development

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Wynn Resorts (WYNN) is currently constructing Wynn Palace in the Cotai area of Macau. It is a fully integrated resort that will have 1,700 rooms, meeting space, casino, spa, retail offerings, and a food and beverage outlet. The total budget of the project is estimated at ~$4.1 billion. Wynn Palace is expected to open in the first half of 2016.

In this series, you will learn about the decrease in Wynn’s revenues in Q314, Wynn’s recent share price performance, VIP gaming activity falling and mass market strengthening, broker optimism but caution about Wynn, and why Wynn looks attractive even though its valuation multiple is higher compared to the peer group.

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