Wynn Reports Flat Results for 4th Quarter

February 14, 2008

Shares in Wynn Resorts Ltd fell on Wednesday as the Chief Executive Steve Wynn warned that Las Vegas would not be immune from a recession. Executives blamed the less than anticipated growth on higher than expected wins from table game player and a reduction in pedestrian traffic due to the closures of the Stardust and New Frontier Casinos in Las Vegas.

Overall profits were healthy however due to the company’s operation in Macau, indicating how much the Chinese market is important now to the large Gaming companies - in fact earnings from Macau were greater than the Las Vegas operation.

These reports will further dampen the mood and feeling of Las Vegas, increasing fears that the city may be facing a hard time in the coming months and years. With less wealthy people now being more budget conscious and not prepared to spend as much as they have recently, and with Las Vegas recently having been announced as the posting the 3rd highest metro foreclosure rate in the US, things may not be so rosy for the big gaming companies, and there may be an added reliance on Macua to produce profits.

Written by admin · Filed Under Las Vegas News and Views