Established in June 2002, Nevada-based Wynn Resorts (WYNN) is a leading developer, owner, and operator of destination casino resorts. It was founded by WYNN’s chairman and CEO (chief executive officer), Stephen A. Wynn.
Wynn Resorts is traded on the NASDAQ Global Select Market under the ticker symbol WYNN. The company comprises ~1% and 7% of the Consumer Discretionary Select Sector SPDR Fund (XLY) and the VanEck Vectors Gaming ETF (BJK), respectively.
Wynn’s business segments
Wynn Resorts (WYNN) operates Wynn Macau and Wynn Las Vegas. Wynn Macau operates a casino hotel resort in Macau, China. Wynn Las Vegas operates a casino hotel resort in Las Vegas, Nevada.
The above chart depicts the breakdown of the company’s revenue for 2014. WYNN generated 70% of its sales through Wynn Macau and the remaining 30% through Wynn Las Vegas.
WYNN is currently constructing Wynn Palace in the Cotai area of Macau. It’s a fully integrated resort that will have 1,700 rooms and 500 gaming tables. The total budget for the project is estimated to be ~$4.1 billion. Wynn Palace is expected to open in the first half of 2016.
In this series, we’ll look at why WYNN’s revenues decreased in 4Q14. We’ll also see why WYNN’s VIP and mass market segments collapsed and why WYNN could be a solid investment for the long term.