CR65-p54&55-Business:SJC-Casino Review 16/2/08 23:26 Page 2
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Casinos in Nevada together modest increase of 0.8 per All 11 casinos in Atlantic City saw a decline in revenues in
recorded a year-on-year cent in the month but not January 2008, the first time that every single venue’s results
increase in gross gaming expectedly accounted for the
Atlantic
have fallen. Gross gaming revenue was down 10 per cent on
revenues in December 2007 of lion’s share of revenues, taking
City
the same month last year to $355m (€243.67m) with drops
3.1 per cent to $1.09bn $614.86m (
casinos
ranging from 21 per cent at the Tropicana to a mere 0.8 per€422.08m).
( cent at the Trump Plaza. Even the Borgata, which has bucked€748m), the Nevada Gaming
Control Board has reported. down the trend until now, saw a 3.9 per cent fall to $61m
Nevada casinos up
The main resort casinos on the (€41.87m). The NJCCC says the falls are due to relaxation of
Las Vegas strip saw a far more gambling laws in Pennsylvania and New York.
Macau drives Wynn Resorts
2007 revenues up
A complicated set of
The Wynn Macau, the year ahead looks very promis-
annual results sees a
expansion of which has
ing as demand continues to
contributed substantially to
grow with no appreciable addi-
Wynn Resorts with a
the company’s full year results
tional supply entering the
huge upswing in
market in the next 12 months.”
revenues thanks to
giving a per unit GGR of $470 Turning to the home
(€323). market, he said: “The Tower
increased activity in
President of Wynn Resorts, Suites at Wynn Las Vegas is the
Macau and strong
Ron Kramer, said: “Simply, 2007 only casino resort in the world
was a great year. We are to receive both the Mobil Five
results from Las
extremely proud of our results Star and the AAA Five Diamond
Vegas. However, with
in Macau and in Las award and we have done it two
the US economy
Vegas…The Wynn brand has consecutive years. We’re also
become synonymous with very proud to be the only
under threat of a quality. Our loyal customers resort in Las Vegas to be hon-
significant downturn,
enjoy the intimacy of our oured with the prestigious
Macau might have to
design and appreciate the Michelin Guide’s Five Red
extraordinary level of service Pavilion award.”
support the whole we provide. We believe we The figures from Las Vegas
company.
have the top properties in each are not as strong as they have
of the markets where we been, however, which CEO
operate, and our results reflect and founder Steve Wynn put
madeinchina 2006 included an exceptional that pre-eminence.” down to market conditions.
WYNN RESORTS item of $741.9m ( Kramer was delighted with€509.23) from He said: “I think it’s proba-
the sale of a subconcession in progress in Macau. “On 24 bly a good idea to be cautious
Expanding its operations in Macau. Adjusted net income for December 2007, we opened about the Las Vegas market in
Macau has allowed Wynn 2007 was $329.4m ( the Wynn Macau expansion,€226.1m) general. It has been said that
Resorts to turn a profit in its against an adjusted figure for which increased our table Las Vegas is somehow imper-
fourth quarter of 2007, gener- 2006 of just $49.4m ( offerings by approximately 40€33.91m). vious to economic trends in
ating $65.5m ( per cent and nearly doubled€4.12m) off net In Las Vegas, net casino rev- the USA. That isn’t quite an
revenues of $711.3m enues for the full year reached our slot capacity. We continue accurate way of expressing it.
( to perform well in Macau. We€488.23) by comparison $642.3m (€440.87), up nearly Las Vegas is resistant because
with a $55.5m ( believe that the opening of€38.1m) loss 20 per cent on 2006, which so much of our business is
in the same quarter of 2006 off the company attributes to the MGM next door should help booked in advance, conven-
net revenues of $563.6m success of Wynn Las Vegas in draw additional traffic to our tions for example. If there is a
( neighbourhood.€386.85). the high-end gaming market. general economic softening,
Net revenues for the whole Drop was up by 14.6 per cent “In 2007, gaming revenues Las Vegas reacts a little later…It
year rose by 87.6 per cent over and the gross revenues earned cent range. (€782m). In the mass-market for the market were up 47 per would be much too sophisti-
the 2006 results to $2.7bn from the tables averaged at Turnover on the VIP table table games, drop was about cent and gaming revenue per cated to think that Las Vegas is
(€1.85bn). Net income for the 25.3 per cent, above the target games at the Wynn Macau was $2bn (€1.37), generating GGR visitor grew sequentially every somehow a magical island
year reached $258.1m range. The drop in the resorts $36.7bn (€25.19bn), generat- at 19 per cent of $380m month, an incredible testament unto itself, immune or isolated
(€177.16), down from $628.7m slots was up slightly and within ing gross gaming revenues at (€260.83). Drop at the slots to the depth of this market. from the effects of the cities
(€431.53) in 2006 - however, the expected 4.4 to 5.5 per 3.1 per cent or $1.14bn was $1.7bn (€1.17) in the year, Trends remain strong and the and communities it serves.”
Record
marginforward games $54.5m. second of the year will be
WMS INDUSTRIES President and CEO Brian even better, consistent with
Gamache said: “Our record the pattern evident in the 2007
With second quarter revenues second quarter results were financial year. It has raised its
Q2 for
up 18 per cent to quarterly driven by the exceptional 34 revenue expectations to an
record of $159m, slot machine per cent growth in gaming above $620m, up by $25m on
manufacturer WMS Industries operations revenue and the 47 previous lower estimates due
WMS
has posted a gross profit for per cent increase in interna- to expected demand from
the three months to the end of tional unit sales revenues. California and Indiana,
December 2007 of $93.5m, a Overall the strong operating despite general “softness” in
margin of 58.7 per cent. performance reflects contin- the North American market.
The excellent results come ued success and industry “Overall we expect 2008 to
off the back of new unit ship- leadership in developing benefit from continued growth
ments worldwide of 7,064 unique, innovative product in our gaming operations
machines, and a quarter-on- that appeal to players on a business, further market
quarter increase in the games of six per cent, or 492 product sales were $104.7m global basis.” share expansion and interna-
installed base of participation units, to 9,186. Revenues from and from the participation The company expects the tional growth,” said Gamache.
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March 2008 businessnews 55
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