Wynn Resorts is a casino developer which has had a riveting first quarter of the year, both due to scandalous revelations and according to the revenue reports recently issued by the company. As it became known this Tuesday, the first three months of 2018 witnessed a significant drop in the share prices of the company, but an overall increase in the operating revenue of the casino operator.
According to the information listed recently, Q1 of this year not only brought quite the attention towards the casino operator, but it also resulted in a 20-percent surge in the overall operating revenue of the company when compared to the performance demonstrated over the same period last year. The profit rates reached some $1.72 billion and they were boosted mainly because of the operation of Wynn Macau. The revenue generated by the operation in Las Vegas reached some $13 million which is a significant improvement.
The legal issues which involved the former Chief Executive Officer Steve Wynn in an alleged sexual misconduct scandal caused some $465 million in charges aiming to settle them. This is what eventually led to the considerable loss amounting to some $204.3 million over the span of the last three months. When compared to the performance during Q1 of 2017, Wynn managed to amass a total of $100.8 million. Represented in shares, this equals $1.99 a share loss in the first three months of 2018, in comparison to $0.99 per share in 2017.
Back in January, before any sexual misconduct allegations began swirling around the casino tycoon Steve Wynn the company’s shares trades at more than $200 per share. The price at which he sold his shares in March amounted to $180 per share, but shortly after that there was a drop of 0.8 percent and the company’s shares were trading at $177.50
Future Projects of the Casino Developer
In the meantime, the newly appointed CEO of the company, Matt Maddox stated that the company has decided not to proceed with some of the future projects considered by the previous leading figure, Mr. Wynn. According to Mr. Maddox, the proposed budget of $3 billion which was initially dedicated for the development of a new casino resort called Paradise Park on the Strip might not prove to be sustainable in the foreseeable future.
In order to downsize the project, Wynn Resorts will have to scrap the plans for a floating parade on a lake. Instead, the location is expected to have on offer beaches and bars for its guests which will make the project budget more realistic for accomplishing. The move comes in an attempt of the company to show that since the management has changed, there will be a shift in the operation style.
Mr. Maddox stated that it is all being done with the objective to reduce the negative publicity revolving around the brand and decrease the negative impact of it. Among the changes which have taken place since he was first appointed at the leading position, is the change in Wynn’s parental leave policy which is now going to feature a six-weeks paid leave when a child is born.
According to Mr. Maddox statement, this is one of the most beneficial arrangements in the industry and it shows the casino developer’s attention to details and to the well-being of its employees.