Tags: wynn | casino | earns | profit

Casino Operator Wynn's Profit Misses Estimates

Wednesday, 19 Oct 2011 05:49 PM

Casino operator Wynn Resorts Ltd swung to a quarterly profit as revenue at its Wynn Macau unit soared 42 percent, but it won less money than usual in Las Vegas, and its shares fell more than 5 percent.

Also, some investors had expected the company to announce a special dividend, but Chief Executive Officer Steve Wynn said on a conference call that there are no plans for such a payment.

"We are doing our budgeting on the work that is going to unfold in the next few years in Macau and we have alternative investments," Wynn said.

Adjusting for one-time items, Wynn earned $1.05 per share in the third quarter, which fell short of analysts' average forecast of $1.18 per share, according to Thomson Reuters I/B/E/S.

"The main reason for the shortfall was that they had an unlucky month for Wynn Las Vegas," said Morningstar analyst Chad Mollman. "If you adjust the EPS number to a normalized hold number, earnings were basically in line."

The company's Las Vegas casino revenue for the quarter fell 8.3 percent to $126.9 million. Wynn won just 18.3 percent of wagers made by Vegas table gamblers, compared with a win percentage of 22.8 a year earlier.

Wynn operates two casino-resorts in Las Vegas and two in Macau, the only place in China where gambling is legal. A third Macau resort is planned.

Wynn said in September that the government of Macau had formally accepted the terms of a land concession contract for the new resort, to be built in a area known as the Cotai Strip, but local media subsequently reported that the government was still studying Wynn's application.

CEO Wynn said Wednesday Macau officials are following standard procedures while juggling a large volume of public works projects.

"You don't get to rush it or change it," he said.

The company's quarterly net revenue rose 30 percent to $1.3 billion from a year earlier. Analysts, on average, had expected $1.29 billion.

Wynn, based in Las Vegas, reported a third quarter net profit of $127.1 million, or $1.01 per share, compared with a year-earlier net loss of $33.5 million, or 27 cents a share.

Wynn's Las Vegas revenue rose 3.7 percent to $346.9 million, while adjusted property earnings rose 11.3 percent to $85.1 million. Macau revenue climbed 42 percent to $951 million, and property earnings rose 50 percent to $296 million for the quarter.

Shares of Wynn, which fell 5.4 percent to close at $130.27 on Nasdaq, were lower at $123.22 after hours.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
Casino operator Wynn Resorts Ltd swung to a quarterly profit as revenue at its Wynn Macau unit soared 42 percent, but it won less money than usual in Las Vegas, and its shares fell more than 5 percent. Also, some investors had expected the company to announce a special...
wynn,casino,earns,profit
417
2011-49-19
Wednesday, 19 Oct 2011 05:49 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved