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Wynn Resorts Profit Hurt by Lower Las Vegas Results

Monday, 07 May 2012 05:37 PM

Wynn Resorts Ltd., the casino company founded by billionaire Steve Wynn, reported first-quarter earnings fell 19 percent, missing analysts projections on lower winnings in Las Vegas.

Net income fell to $140.6 million, or $1.23 a share, from $173.8 million, or $1.39, a year earlier, Las Vegas-based Wynn said Monday in a statement. Excluding items, profit of $1.33 a share missed the $1.41 average of 21 estimates compiled by Bloomberg.

Revenue declined 8.1 percent in Las Vegas to $362.8 million. Casino revenue dropped 19 percent, the company said. Wynn does more of its business in Macau, where revenue increased 9.8 percent to $951 million, according to the statement. The company recently gained government approval for a new resort there.

Industry gambling revenue in Macau rose 26 percent to 99.3 billion patacas ($12.4 billion) in the fourth months through April, according to the Gaming Inspection and Coordination Bureau Macau

In February, Wynn redeemed a 20 percent stake in the company at an almost $800 million discount from Japanese billionaire Kazuo Okada after the board declared him unsuitable to remain an investor. Okada denied the charges and sued the company for breach of contract.

Wynn’s revenue for the quarter rose 4.2 percent to $1.31 billion, missing analysts’ projections of $1.34 billion. Revenue totaled $1.26 billion in last year’s first quarter.

Wynn fell 1.2 percent to $123.71 in extended trading after results were announced. The stock lost 1.7 percent to $125.19 at the close in New York and has gained 13 percent this year.

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Monday, 07 May 2012 05:37 PM
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