WYNN Stock Rockets to Old Highs

Wynn Resorts, Limited (WYNN) is based in Las Vegas, Nevada, US. WYNN owns, develops and operates destination casino resorts.

Wynn Resorts is the owner and operator of Wynn Las Vegas, a casino resort on the Strip in Las Vegas which offers 2674 rooms and suites in its 45 story tower, 36 fairway villas, and 6 private-entry villas designed only for premium guests.

WYNN is also constructing the future Wynn Macau, a casino resort development, located in the Macau Special Administrative Region of China, which is scheduled to open to the public in the third quarter of this year.

These days, WYNN is also working on an expansion of Wynn Las Vegas, which will be named “Encore”. In addition to all these investments, Wynn Resorts has also submitted to the Macau Government an application looking for a new land concession of 54 acres, these targeting the future development of casino facilities; and still continues exploring opportunities to develop additional gaming and/or other related businesses in different domestic and international markets.

WYNN’s “Wynn Las Vegas” operations are still the major support for their operating cash flow. Prior to opening Wynn Las Vegas, the company had not commenced operations, nor has it generated any significant revenues.

For the fiscal year that ended on 31st December 2005, WYNN incurred a net loss of over $90 million, which represents over $113 million (or a 56% decrease) from the net loss of around $204 million for the previous year (2004) and a $50.7 million from 2003.

Overall, these results reflect the cycle of increasing pre-opening expenses, as Wynn Las Vegas approached its opening hour. For last year, the profit margin of the company was a negative 4.73%, though their operating margin was 6.41% positive.

Shares (NasdaqGS:WYNN) ended their trading day at $77.60 a bit lower than their high at $80.19.