American casino operator Wynn Resorts Limited has reportedly announced plans to spin off its Wynn Interactive Limited subsidiary into a newly-listed entity established in partnership with Austerlitz Acquisition Corporation.
According to a Monday report from the Las Vegas Review-Journal newspaper, the firm made the announcement during a conference call to discuss its first-quarter financial results. The Las Vegas-headquartered company purportedly revealed that the move for the enterprise behind the WynnBet mobile sportsbetting app is destined to bring in some $640 million in cash that will help it to fund operations and growth initiatives.
Beneficial backer:
Wynn Resorts Limited reportedly explained that Austerlitz Acquisition Corporation is a ‘blank check’ concern run by the American billionaire businessman behind the Vegas Golden Knights franchise of the National Hockey League (NHL), William Foley (pictured), and that the listing will moreover see the value of Wynn Interactive Limited rocket up to about $3.2 billion, which would be over four times higher than its projected revenues for 2023.
Promising prospects:
Matt Maddox serves as the Chief Executive Officer for Wynn Resorts Limited and he reportedly told investors that the floating of Wynn Interactive Limited on the Nasdaq bourse is also destined to ‘unlock the tremendous potential’ of the concern and allow it to ‘further accelerate growth’ within the rapid-expanding American sportsbetting market. The boss purportedly proclaimed that the move will furthermore permit the spun-off business, which is to keep its existing name, ‘to capture the massive opportunity in North America’ by continuing to ‘build great product and provide the best customer service’.
Maddox reportedly told the newspaper…
“William Foley is the ideal partner to ensure continued success as his track record with business combinations, extensive experience growing marquee consumer brands and partnering to maximize value in businesses like ours will be invaluable as we continue scaling.”
Skilled squad:
Maddox reportedly detailed that he will continue to serve as the Chairman for Wynn Interactive Limited post-float with Craig Billings and Sadok Kohen staying on as the sportsbetting enterprise’s President and Chief Product Officer respectively. He purportedly divulged that the entity with its 300-plus employees is to be additionally led by directors Foley, Ellen Whittemore, the Executive Vice-President for Wynn Resorts Limited, and the founder of Bwin, Norbert Teufelberger.
Maddox purportedly proclaimed…
“As we looked out into the future and we realized that this is likely going to be as large as the commercial casino revenues opportunity of $40 billion over the next five-plus years, we knew that this was an opportunity that we had to capitalize on.”
Rotten results:
Regarding the casino operator’s first-quarter financials and Maddox reportedly disclosed that overall revenues declined by just over 23.8% year-on-year to approximately $725.7 million to leave it with a net loss for the three-month period of about $280.9 million. In Macau, the boss purportedly disclosed that the Nevada company’s Wynn Macau Limited subordinate posted an associated operating deficit of $75 million despite having seen its receipts rise by 3.4% quarter-on-quarter to around $417 million.