Wynn Resorts is forecasting a bright future for its ventures in the immediate future. Over the next few years, the casino operator believes that it will be able to leave the Steve Wynn issues behind. As this happens, it should slowly build up its revenue. This came during an annual analyst and investor day that took place at the Encore Boston Harbor.
There, the company insisted that it will be able to grow the revenue by at least 22 percent in the next 24 months. Its earnings before interest, taxes, depreciation, and amortization or EBITDA should increase by 28 percent. This performance improved should take place once the company had a chance to pay over $60 million in fines, which is also a legacy of the problems with its former CEO.
However, the operator is particularly optimistic about three of its venues. These are the Las Vegas casino, but also its Macau and Boston properties. In all of these Wynn foresees a boost in revenue that will take place continuously over the coming two years.
Focus on Macau
Unsurprisingly, the casino operator sees Macau as one of the key markets, especially for its growth. It gives about 75 percent of the company’s operating revenue as of 2018. Wynn is also betting that the VIP and mass market segments will grow in the coming years.
Interestingly enough, the operator is also secure in the prediction that the US-China trade war will not deepen. Instead, Wynn forecasts a relatively quick resolution, which will then kickstart the Chinese market.
In the US, the casino operator wants to improve its operation, mainly in Las Vegas. This is a wider part of efforts in the industry to partially or completely re-energize the market. Here, as well as in Boston, Wynn will try to focus on the sports betting market.
It is clear that for most casino operators, this is the way to try and reach a younger demographic. This has proven to be a hard sell so far, especially thanks to the fact that brick and mortar casinos face staunch competition from online service providers.
However, with the expansion of the entertainment offered in all of their venues, Wynn believes it has a shot. Instead of providing a stale process of gambling and going home, it wants to tap into a more diverse experience. Here, sports like the NFL and a huge selection of sports bar, for example, are just one of the options Millenial and Y Generation customers could appreciate.
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