Two Way Hard Three | Las Vegas Casino & Design Blog

Wynn and LVS are very equal companies today. I predict Wynn post higher revenue numbers. But we can only hope he makes money this quarter. I'll be curious to see how MGM post tomorrow.

Brian: The fact that you could knowingly make such an uninformed statement that WYNN + LVS are "equal" companies today, is absolutely ludicrous! This could not be further from the truth. When comparing the current project development, under construction, by LVS with Palazzo's launch by the end of this year (making Venetian the world's largest hotel at over 7,200 rooms, not counting their condo tower which is also moving forward) + the first "real" mega-resort; Venetian Macau's opening this summer, not even including the fact that [they] have just broken ground in Singapore on a multi-billion dollar resort, since LVS has currently been awarded with the exclusive concession for the first mega-gaming property there, indicates to me you need to do a little more research before opining. BTW - MGM/MIRAGE just reported that their profits jumped 17% for Q1 2007 over Q1 earnings last year. WYNN will most likely break even, at best, for Q1 2007, + if they are indeed in the black for the FIRST time EVER in almost two years, it will be an act of God! (or maybe a result of Steve's personal relationship with the Dalai Lama - LOL) The Wynn expansion in Macau + Encore here in Las Vegas pale by comparison to what's on LVS' plate. Once MGM Grand Macau opens at the end of the year, they will suck the life out of Wynn Macau since they are literally neighbors. Everyone I have spoken to who has been to Macau recently that are following the construction progress of MGM Grand has remarked that it makes Wynn's cheap, stunted, lack of detail version of WLV look like a cut-rate piece of crap. I am as anxious as you are to know WYNN's revenue numbers - we're only a few days away. You had better cross your fingers because if Wynn Resorts, Ltd. continues to keep bleeding red ink there will certainly be a shareholder revolt!

The Venetian website shows images of the newly renovated rooms. I like the new look! But then I'm a fan of LVS, so I may be in the minority : )

Without answering for Brian, I think what he may have meant is in terms of macro market positioning, they are somewhat similar.

Many analysts consider them to track each other to a degree, though that will diverge as LVS expands into non-gaming in China, the Singapore casino, etc... For now, many analysts consider the stocks to have similar trajectories and to be vulnerable to the same shocks.

Thanks Detroit - here's the link to the transcript:

http://china.seekingalpha.com/article/34332

Leonard. I said TODAY, not Tomorrow. Wynn and LVS each have one property TODAY, in operation. They each have one in Macau, and one in Vegas. They have a very similar number of rooms, but Wynn is still short of LVS by about, 700 rooms. So TODAY, these are very equal companies when comparing revenue. So Leonard, I predict that revenue wise, WYNN exceeds LVS for this quarter. I am not talking about profit, I am talking revenue. We will find out on Monday. I just had a death in the family, but unless its not possible, I still plan on going to the Wynn Shareholder meeting on Tuesday. If I am wrong, King Leonard, about my revenue prediction, the If I am in town on Tuesday, I will buy you breakfast at Tableau.

Hunter: "the same shocks" refer to performance + earnings relegated to revenue generated from [their] respective Macau properties at this point. I have discussed this with many analysts who all concur with this theory. Considering that Sheldon Adelson is about to launch the very first mega, multi-billion dollar project (Venetian Macau) on the Cotai Strip, all by his lonesome, I would submit that this puts Adelson in the same "visionary" status as Del Webb, Jay Sarno, Howard Hughes + Kirk Kerkorian who were the true pioneers that transformed the Las Vegas Strip to what it has evolved into today. The fact is, even if Venetian Macau takes longer to mature due to its not so easily accessible location (at the present time), Adelson will win at the end because he can pay for that project out-of-pocket + still have an extra $3B or so left over based upon his increased YTD on-paper net worth alone, which Forbes reports to be in the neighborhood of $6.5B! Wynn, on the other hand, according to Forbes, net worth, has on-paper, increased by a mere $1.3B during the same period, including the run-up of WYNN stock. Do you really think that Steve can afford to take the Cotai plunge + still survive? I think not. For those of you that don't quite get it, in the gaming industry, those who have the most liquidity + cash reserves are the only ones who will ultimately survive at the end of the day. WYNN is so leveraged at this point, if it were not for the PBL concession sale last year in Macau, he would not even be in the running right now...

So...Is that a NO on breakfast? :)

Just because 9 out of 10 dentists agree doesn't mean it is true.

Anyone can trot out experts. How about some boots on the ground?? What about that???!?

Brian: I'm sorry to hear about the death in your family. Regarding WYNN however, when push comes to shove, shareholders could give a rat's ass about "revenue" but, as I'm sure you are well aware, public companies + their respective stockholders' ONLY concern are PROFITABILITY, something that Steve Wynn has NEVER yet realized ever since he built the Mirage! I'm no bean counter, but as an investor (no, not in WYNN), all I want to see are numbers that significantly place a particular public company's quarterly earnings in the BLACK, regardless of any offset in operating expenses.

Posted by mike_ch

Somebody sure has a lot of love for company that has no projects at all with that vaunted "progressive architecture" (including Palazzo, which I think is lovely as it continues to go up but visually is very different from the Venetian and shouldn't be combined room counts unless you believe in hype.)

Apparently all you have to do is copy your Vegas hotel and plop down a reduced detail version (did you see those interior shots?) to be as visionary as Jay Sarno these days.

mike_ch: You have NEVER once heard me personally commend the so-called "progressive" design for ANY of Adelson's properties to-date, Palazzo included. Obviously, just as Steve has done in Macau (albeit at a substantially INFERIOR level) Adelson is basically repeating what amounts to essentially another Venetian in Macau. BOTH LVS + WYNN are using the same design formula which has already been proven successful here in Las Vegas, but the jury is still out regarding the ability to convince Chinese gamblers to convert to the "Vegas Style" paradigm in Macau. There exists two diametrically opposed cultures with regard to Western + Asian styles of gambling. MGM/MIRAGE is currently the ONLY American operator willing to, from strictly an architectural POV, take a major risk by building a tower that is over-the-top, consistent with what they are currently doing here with CityCenter. The Macau [Venetian] deisgn clone will not, however, be the case with LVS's Singapore project, in terms of its architectural 'significance'. If Adelson even presented another Venetian copy to the authorities in Singapore, he would have been booted right out the front door! The problem (design wise) with Wynn Macau, is that it is essentially a 'stripped down' version of WLV, the exterior window wall completely lacks any of the detail of their already, really uninspired, Las Vegas property, that being both (WLV + Encore). At least MGM Grand Macau is building an obviously distinctive, thoroughly modern, high-quality project that, design wise, comparatively makes Wynn's property look like a cheap cost-cutting high rise(s), which in fact it is!