Tags: Wynn | casino | profit | Vegas

Wynn Tops Estimates on Rebounding Las Vegas Market

Wednesday, 24 Oct 2012 04:40 PM

Wynn Resorts Ltd., owner of casinos in Nevada and Macau, posted third-quarter profit that exceeded analysts’ estimates on the choppy recovery in the company’s home market of Las Vegas.

Profit excluding some items totaled $1.48 a share, the Las Vegas-based company said Wednesday in a statement. That beat the $1.34 average of 23 analysts’ estimates compiled by Bloomberg. Net income dropped to $112 million, or $1.11 a share, from $127.1 million, or $1.01, a year ago. Revenue was little changed at $1.3 billion, missing projections of $1.31 billion.

Wynn Resorts’ Las Vegas revenue rose 12 percent. The company probably advanced on baccarat play, which soared 71 percent on the Strip in July and August from a year earlier, Robert LaFleur, an analyst with Cantor Fitzgerald LP in New York said in a research note yesterday.

The company founded by billionaire Steve Wynn also turned in the best performance in the analyst’s third-quarter room survey, with asking rates up 16 percent.

Revenue in Macau, which accounted for 72 percent of sales last year, fell 4.3 percent, reflecting a shift to mass market customers as high-rollers spend less.

Per-share profit benefited from a drop in stock outstanding. The company seized a 20 percent stake held by ex- Vice Chairman Kazuo Okada after the board concluded he may have broken anti-bribery laws by extending free rooms and cash to Asian casino regulators. The Japanese executive, a co-founder of the company, denies the claim and has raised questions about Wynn’s $135 million donation to a Macau university foundation.

Wynn Resorts shares rose 4.2 percent to $117 in extended trading. The stock fell 1.8 percent to $112.29 at the close in New York and has gained 1.6 percent this year. Wynn Macau gained 2.1 percent to $HK 21.65 in Hong Kong.

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Wynn Resorts Ltd., owner of casinos in Nevada and Macau, posted third-quarter profit that exceeded analysts' estimates on the choppy recovery in the company's home market of Las Vegas.
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Wednesday, 24 Oct 2012 04:40 PM
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