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The evolution of Wynn Resorts

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The story of Wynn Resorts

Wynn Resorts (WYNN), a Nevada-based company, was founded in June 2002 by Stephen A. Wynn. The company’s predecessor, Valvino Lamore, was formed in April 2000 to acquire land and to design, develop, and finance Wynn Las Vegas, a subsidiary of Wynn Resorts. In September 2002, Wynn Resorts became the parent company of Valvino Lamore when the members of Valvino contributed 100% of the membership interests in Valvino Lamore to Wynn Resorts in exchange for shares of the company’s common stock. Wynn Resorts consummated an initial public offering (or IPO) of its common stock in October 2002.

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Wynn Resorts is a developer, owner, and operator of casino resorts. It is traded on the NASDAQ Global Select Market under the ticker symbol WYNN and is part of exchange-traded funds (or ETFs) like Consumer Discretionary Select Sector Standard and Poors depositary receipt (or SPDR) fund (XLY) and VanEck Vectors Gaming (BJK).

Wynn Resorts’ operating segments

Wynn Resorts, which operates through its subsidiaries Wynn Macau and Wynn Las Vegas, has casino hotel resort properties in Macau and Las Vegas, respectively.

Wynn Resorts’ Macau resort offers a total of 1,008 rooms and suites, with ~280,000 square feet of casino space, casual and fine dining in eight restaurants, ~57,000 square feet of retail space, and recreation and leisure facilities.

Wynn Resorts’ Las Vegas operations offers a total of 4,748 hotel rooms, suites, and villas, ~186,000 square feet of casino space, 34 food and beverage outlets featuring signature chefs, an on-site 18-hole golf course, meeting space, ~96,000 square feet of retail space, three nightclubs, and a beach club.

Wynn Resorts derives 71% of its revenues from Asia, while casino companies like Las Vegas Sands (LVS) and MGM Resorts International (MGM) derive 80% and 34% of their revenues, respectively, from Asia.

In this series, you will learn the following about Wynn Resorts:

  • Wynn Resorts’ revenue streams
  • Recent developments for Wynn Resorts
  • A dissection of Wynn Resorts’ costs
  • Why Wynn Resorts is profitable
  • Why Wynn Resorts maintains its profitability in the long run
  • How Wynn Resorts could impress investors with its dividend track record
  • How Wynn Resorts saves a lot of tax on casino profits
  • Why Wynn Resorts is financially stable in the short run
  • Why Wynn Resorts is considered to be highly levered
  • How Wynn Resorts is able to employ its huge debt effectively
  • Why Wynn Resorts is protected from rising interest rates to service its floating debt
  • Wynn Resorts’ management brings a lot of experience
  • Wynn Resorts’ ownership details
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