Preliminary Second-Quarter Revenue Expectations
Wynn Resorts Ltd. has announced its stock buyback program alongside preliminary revenue estimates for the second quarter. For Wynn Las Vegas, the company expects operating income to be between $18 million and $22 million, a decrease from $63.4 million reported last year. Additionally, adjusted property cash flow for Wynn Las Vegas is projected to range between $80 million and $84 million, down from approximately $115 million last year.
Growth and Investment in Macau
Despite the downturn in Las Vegas, Wynn Resorts continues to see strong performance in Macau. Reports suggest that the company may consider a Hong Kong stock offering to raise up to $3 billion. This capital would support the development of the Encore at Wynn Macau, a new resort featuring 400 luxury suites and villas, extensive shopping, numerous restaurants, and VIP gaming areas. Construction for the Encore at Wynn Macau has already begun, with an expected opening in 2010.
Macau Revenue Outlook
Wynn Macau's revenue outlook for the second quarter is promising, with operating revenues expected to be between $100 million and $106 million, significantly higher than last year's $53.2 million. The adjusted property cash flow is anticipated to be between $152 million and $158 million, up from $92 million the previous year.
Stock Buyback Program and Potential Hong Kong Offering
Wynn Resorts also announced an increase in its stock buyback program, with the board approving an expansion of up to $500 million, in addition to the previously announced $1.2 billion buyback. Unconfirmed sources have reported that Wynn Resorts has engaged Morgan Stanley, UBS, and Deutsche Bank to assist with a potential Hong Kong stock offering, which is expected to be realized soon.
Final Results Release
The final results for Wynn Resorts' second-quarter performance are scheduled to be released on July 24.
