Wynn shares surge after Fertitta grabs 6% stake
In an SEC filing released over the weekend, Wynn disclosed that Fertitta has acquired 6.9 million shares in the Las Vegas-based business, making him the second largest single investor in the company after Elaine Wynn – who has a 9% stake.
Fertitta has extensive experience in both hospitality and gaming through his ownership of the Golden Nugget casino chain.
The markets reacted positively the announcement in a jolt to Wynn’s share price. The company’s stock had fallen 51.5% since May 2021 as the business has been buffeted by the historically weak gaming environment in Macau, where Wynn has significant operations as one of the six concessionaires.
In the company’s Q2 financial report Wynn’s losses rose 23.1% from $173.3m to $213.4m. Despite this, CEO Craig Billings was bullish on the long-term prospects in the region.
“In Macau, while Covid-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time,” he said.
However, there is some hope that Macau is showing signs of recovery, reporting an over 30% month-on-month rise in revenue. Online visa rules are additionally set be relaxed from today in a boost to the land-based trade in the city. Uncertainty still remains, as the recent COVID-19 outbreak and lockdown at the MGM Cotai illustrates.
Houston Rockets owner Fertitta first entered the hotel business after his publicly traded company Landry’s Inc. acquired the San Luis Resort, Spa, & Conference Center in Galveston, Texas. This was followed by the business’s 2005 purchase of the Golden Nugget casino chain.