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Wynning The Battle, Losing The War

Mom. Dad, we need to talk. Do you remember that time mom caught me playing dress-up with my sister's panties as a teenager?

OK, this is not that awkward of a conversation, but I think the numbers show there is a dead chip in the room nobody is talking about. Last year, Wynn stated in an investor conference call that the company this year would be focusing on the "real sensitive" of the "real money". Results on that effort have been lackluster, if not disappointing. Has the bloom finally come off the Wynn's Macanese Lotus?

First, the winning battle. Wynn's Macau revenues are up. In fact Wynn still holds on to the top spot out of all casinos in Macau, on an individual basis. The property is far head, with around $500 million separating them and Venetian, Macau's number two.

The war though is not looking good. The past few months have found remarkable growth in Macau. Yet Wynn is losing market share. They say the growth is in the VIP segment. Given Wynn's "real money" focus, one would think they would gain their share, yet again it's slipping. There are strong rumors that the market for Junkets are getting more and more competitive with some casinos taking only 3% of the VIP drop. Losing the share to such competitive junket splits hints that the luxury upgrades Wynn made with Encore Macau have little effect in the market. Worse, Galaxy is nipping at Wynn's heals for the fourth place spot, and the Galaxy MegaResort is due to open next year creating even more competition.

Time for Wynn to play his only ace, announce his plans for the Wynn Cotai and start building. Might as well play it now Steveie before SJM makes its bid for a chunk of your massive plot on Cotai like they are doing with the Sands right now.

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Comments & Discussion:

Where is Melco in all of this? Is COD finally starting to make a name for themselves?

Melco moved up to third, largely on heavy VIP promos. Can't wait for the golden week numbers to see if they sustain it.

and it wouldnt be a hostess club...? (started in asia then exported elsewhere)

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