Like Las Vegas Sands
Wynn's resort saw revenue rise just 9.1% in the quarter to $995.5 million and adjusted EBITDA rose only 5.5% to $313.1 million. If Las Vegas Sands and Wynn's results are any indication, it appears that gaming dollars are moving to Cotai, where The Venetian Macau and Melco Crown's
Stateside, Las Vegas was quite impressive considering the economic backdrop in the town. Revenue grew 7.2% to $348.4 million, helped by an 11.7% growth in room revenues. Adjusted property EBITDA was $89.1 million, an impressive 30.3% growth from 2010. Right now, it appears that Wynn is outperforming Strip rivals Las Vegas Sands and MGM Resorts
Wynn has been in the news for exploring a resort in Massachusetts, and on the conference call, CEO Steve Wynn was tepid in his response. There is interest in growing the company's U.S. footprint, but the return on investment will need to meet the company's standards. Right now, it sounds like there are too many questions outstanding to make any solid predictions about a potential project for Wynn.
Macau, on the other hand, is a different story. The company continues to design and plan for its Cotai development, and investors are left wondering when it will take the next step. But Wynn and MGM are left waiting for government approvals for their Cotai developments, and it's anyone's guess when that's going to happen.
Or maybe investors are tired of trying to chase one geographic gaming region after another. It feels like the growth has gone from Vegas, to Macau, then back. Add in Singapore to the mix and it can be hard to remember where you should place your chips. If that's the case, you could also look at International Game Technology
Foolish bottom line
Wynn is still one of the top gaming stocks because of its strong balance sheet and solid market position. But the company is going to have to find a way to grow share in Macau as competitors get stronger by the day. If anyone can do it, it's Steve Wynn, who has a history of outperformance in the gaming industry.
Casino operators realized supercharged returns in recent years by looking internationally. The exact same thing is going on with three major consumer goods companies right now. The Motley Fool has profiled three such companies in our special free report: 3 American Companies Set to Dominate the World.
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