Recent Financial Activity at Wynn
- Less than a month ago Wynn Macau Ltd. IPO Shares had a strong showing on the Hong Kong Stock Exchange with a $1.63 billion share sale.
- Wynn sells $500 Million in bonds for Aqueduct project and future Macau expansion.
- Wynn dropped out of the bid process for the Aqueduct Racino project in New York.
-Announcing its quarterly results on October 27, Wynn Resorts reported a decline in third-quarter profit, reflecting higher other expenses and lower income tax benefit compared with last year. Revenue edged up in the quarter despite lower casino revenues, driven by growth in revenues from rooms, food and beverage, and entertainment. Net casino revenues were flat with last year.
The Las Vegas Sun reports: Wynn Resorts to Begin Paying Shareholder Dividend
Wynn Resorts Ltd. today announced it will start sharing profits with shareholders in the form of dividends, with the first payout set for Dec. 3.
The Las Vegas company announced a special cash dividend of $4 per share for stockholders of record as of Nov. 19, which will cost it about $489 million based on the approximately 122.2 million shares outstanding.
Thereafter, a regular cash dividend program is also planned. It’s anticipated this regular cash dividend will be 20 cents per share for the first quarter of 2010, payable in the second quarter.
Wynn didn’t immediately say why it’s paying a dividend.
Dividend programs are typically created to boost value in a company’s stock and may be an indication the company doesn’t need to hold on to cash for development projects.
In this case, Wynn recently dropped out of the bidding to create a casino at New York City’s Aqueduct race track and doesn’t appear to have any big U.S. development or acquisition projects in the works.
Having completed a $1.87 billion stock offering for a stake in its Macau business, Wynn is looking at expansion in the Chinese gaming region.
Wynn stock rose 6 percent in early trading today.
