Wynn Resorts Touts Macau, Las Vegas Plans

Wynn Resorts Ltd. shares on Thursday hit their highest point since August after the casino operator hosted an investor day at which the company provided an update on its next resort in Macau.

Shares of the company, up 29% over the past three months, rose 10% to $98.89 in recent trading in New York. The stock, which hasn't traded above $100 since August, reached as high as $99.62 on Thursday.

The company gave a financial outlook for Wynn Palace, a $4 billion hotel in Cotai, a strip of reclaimed swampland in Macau that has become prime ground for large developments. The Wynn Palace is slated to open in June.

Nomura analysts described Wynn's expectations of $2.4 billion to $3.1 billion in 2017 gambling revenue and $630 million to $850 million in Ebitda, or earnings before interest, taxes, depreciation and amortization, as "very bullish."

Also at its investor day, Wynn highlighted a new Las Vegas development, tentatively called Wynn Paradise Park, to be constructed on the 130 acres of real estate that currently houses the Wynn Golf Club.

The proposed 38-acre lagoon—which will host activities such as water skiing, paddle boarding and parasailing—will be lined by a boardwalk and a sand beach. The Mandalay Bay resort in Las Vegas also has an artificial beach, which is 11 acres.

"We have a chance to reinvent Las Vegas and make the whole venue an entertainment attraction…an idyllic beach paradise surrounded by white sand beaches," said Steve Wynn, the company's chairman and chief executive.

The new development also will include meetings and convention space, a 1,000 room hotel tower, a small casino, and dining and nightlife. The development is subject to approval by the company's board of directors, and the cost wasn't immediately specified.

In February, Wynn reported that revenue from its Las Vegas operations rose 3.8% to $391.2 million. The company is expected to next report results in May.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

April 07, 2016 12:05 ET (16:05 GMT)

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