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Wynn Resorts Profit Declines, Misses Estimate

Wynn Resorts Profit Declines, Misses Estimate
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5/7/2012 5:16 PM ET

Wynn Resorts Limited (WYNN: Quote) Monday reported a decline in first-quarter profit, due mainly to a drop in revenue from its Las Vegas operations and higher operating expenses. As a result, both earnings and revenue for the quarter missed Street estimates.

Wynn Resorts shares initially lost over 5 percent in after-hours trade on the Nasdaq, but later pulled back to trade down at 1.4 percent.

Wynn Resorts' revenue from Las Vegas operations for the quarter slid 8 percent from last year. Meanwhile, at Macau operations which account for the most business, revenue grew 9.8 percent year-over-year.

Las Vegas gross non-casino revenue rose a modest 1.3 percent for the quarter, driven partly by better food and entertainment income. Macau gross non-casino revenue rose about 13 percent, led by growth across all non-casino segments.

REVPAR, or revenue per available room at Wynn Resorts' Las Vegas operations fell 4 percent from last year to $202, while REVPAR at Macau operations rose 8.6 percent to $296.

Wynn Resorts reported first-quarter net income of $146 million or $1.23 per share, compared to $174 million or $1.39 per share last year.

Excluding items, adjusted earnings for the quarter were $152 million or $1.33 per share, compared to $173.4 million or $1.38 per share last year.

On average, 22 analysts polled by Thomson Reuters expected earnings of $1.41 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter was $1.31 billion, compared to $1.26 billion last year. Eighteen Street analysts estimated revenue of $1.33 billion for the quarter.

Operating costs for the quarter totaled $1.05 billion, compared to $980 million last year, reflecting mainly higher property charges and general overheads.

Wynn Resorts announced a quarterly cash dividend of $0.50 per common share, payable on June 4 to stockholders of record on May 21.

Wynn Resorts recently announced that its Cotai land concession contract has been officially approved by the Macau government. The concession contract has an initial term of 25 years.

Macau, the world's largest gambling market, is the only place in China where casinos are permitted. The Cotai area has become the focus of intense activity with rival Las Vegas Sands Corp. (LVS) having opened a grand casino-hotel in April.

Las Vegas Sands last month reported a surge in first-quarter profit, buoyed by growth at its Plaza Macao, Venetian Macao, and Marina Bay Sands operations.

WYNN closed Monday at $125.19, down $2.21 or 1.73%, on a volume of 2.8 million shares on the Nasdaq. In after hours, the stock further dropped $5.66 or 4.15. In the past year, the stock traded in a range of $101.02 - $172.58.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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