Recently we wrote, in a different forum, that the ultimate verdict on whether to keep the “Wynn” brand on Wynn Resorts would be delivered by customers. Based on 1Q18 results, the vote is “yes.” Deutsche Bank 
analyst Carlo Santarelli called Las Vegas revenues “considerably stronger than our forecast,” especially in the revenue-per-room department, up 6% on 84% occupancy. Gross gaming revenue was an above-expected $204 million (+13%). JP Morgan‘s Joseph Greff termed the domestic returns “right down the fairway.” In terms of company news, the convention center’s opening has been moved to early 2020, but the cost has been trimmed from $360 million to $325 million. (How often does that happen in Las Vegas?) While the company is torn between proceeding with Wynn West or redeveloping the golf course, the lagoon is back “on” at a cost of $150 million.
In other developments, Wynn Palace is slated for two new restaurants (so soon?) and, in re Japan, management “noted that the Galaxy [Entertainment] partnership could be a prelude to working together on future endeavors in new gaming jurisdictions,” according to Santarelli. Leadership reiterated its position that it wouldn’t sacrifice the company on the altar of Boston, which reeks of “exit strategy” to us. Santarelli added that “management spoke favorably about convention bookings and strength from European and Far East gaming customers. We believe the convention commentary further supports the view that demand issues are unlikely to emerge as a result of the fallout 
surrounding Mr. Wynn.”
Greff noted that cash flow in Las Vegas beat Wall Street‘s projections, $143 million to $127 million. Above-average table hold helped drive the Vegas results while, over in Macao, Wynn “can (still) grow faster than the market.” Greff thinks there will be an “eventual” sale of Elaine Wynn‘s shares, although her recent activism suggests otherwise. Her latest gambit is to demand the dumping of board member John Hagenbuch, on the grounds that he is too tied in with Steve Wynn, whose conduct the board is ostensibly still investigating. (Steve is busy suing The Associated Press for reporting a police report filed against him. Disclosing a public record? How dare they!) Elaine is on something of a crusade, arguing that executive pay at Wynn Resorts is not tied to performance, particularly in the case of the $24 million haul made by CEO Matt Maddox, “exorbitant for a first-time untested public company CEO.” Stressing the “positive momentum that has accompanied its recent initiatives” Wynn Resorts replied that it was “focused on the future.”
* We bid farewell to Gaming & Leisure Properties CFO William Clifford, who will retire Aug. 31, perhaps to enjoy a life of gaming and leisure. Clifford, who helped birth GLPI from Penn National Gaming, will be retained as a consultant. No permanent replacement has been named.
