Casino operator Wynn Resorts, Ltd. (WYNN), Thursday reported a rise in profit for the second quarter, helped primarily by higher revenues on a 74.1% increase in net revenues at Wynn Macau. Both earnings and revenues for the quarter came in ahead of analysts' estimates.
The Las Vegas, Nevada-based company's attributable net income for the second quarter increased to $52.40 million or $0.42 per share from $25.48 million or $0.21 per share in the previous year.
Results for the quarter include pre-opening costs of $6.67 million, loss on extinguishment of debt of $3.15 million and property charges of $2.97 million.
On an adjusted basis, net income was $64.94 million or $0.52 per share for the quarter. Prior-year adjusted net income was $11.49 million or $0.09 per share.
On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.
Net income attributable to non-controlling interest for the quarter was $36.51 million.
Net revenues for the quarter increased to $1.03 billion from $0.72 billion last year, driven by a 74.1% increase in net revenues at Wynn Macau. Analysts estimated revenues of $0.99 billion for the quarter.
For the quarter ended June 30, 2010, net revenues for Las Vegas operations were $318.2 million, 1.7% higher than in the second quarter of 2009. Net casino revenues in the second quarter of 2010 were $117.2 million, down 5.8% from the second quarter of 2009.
Room revenues were down 3.2% to $78.8 million during the quarter from last year, as Average Daily Rate decreased 9.6% to $197, compared to $218 in the 2009 quarter. Occupancy was 92.6%, up from the 86.6% generated in the prior-year period, generating revenue per available room of $182 in the 2010 period, compared to $188 in the second quarter of 2009.
Food and beverage revenues increased 11.5% to $111.5 million in the quarter, as the company opened the new Encore Beach Club and Surrender nightclub in May 2010. Retail revenues were $21.5 million in the quarter, 3.0% below last year's levels. Entertainment revenues increased 27.1% to $15.6 million from the second quarter of 2009 primarily due to the Garth Brooks performances.
Wynn Resorts also declared a cash dividend for the quarter of $0.25 per common share.
On July 16, research firm Jefferies initiated 'buy' rating for the Wynn stock, with a mean target of $91.41.
WYNN closed Thursday's regular trading at $87.85, down $0.02 or 0.02%, on a volume of 3.15 million shares on the Nasdaq. In after hours, the stock further declined $3.11 or 3.54%, trading at $84.58. In the past 52-week period, the stock trended in a range of $43.68 to $93.99, with a 3-month average volume of 3.07 million shares.
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