Wynn Resorts Tops Wall Street Views, Helped by Strong Macau Revenue -- Update
July 28 2016 - 6:16PM
Dow Jones News
By Josh Beckerman
Wynn Resorts Ltd. posted second-quarter results above Wall
Street estimates as revenue from Macau operations increased
following seven quarterly declines.
More than half of Wynn's revenue has been from Macau, where the
gambling industry has suffered in recent years as a corruption
crackdown in China has been linked to a decline in business.
Wynn's total net revenue increased to $1.06 billion from $1.04
billion, while analysts polled by Thomson Reuters had projected
$1.02 billion.
Macau revenue rose 3.6% to $639.3 million from $617 million.
Still, revenue from the company's Las Vegas operations fell 1.1% to
$419 million from $423.5 million.
Over all, the company posted a profit of $70.4 million, up from
$56.5 million a year earlier. On a per-share basis, earnings
increased to 69 cents from 56 cents. On an adjusted basis, earnings
were $1.07 a share, topping Wall Street's expectations of 91
cents.
Las Vegas table games drop was $427.4 million, down 16.1%. On
Monday, Las Vegas Sands said its own table games drop in the second
quarter fell 19.7% to $374.8 million.
Shares of the company fell 6.8% to $97.50 after hours.
Fitch Ratings affirmed Wynn's ratings in May and again in July,
then withdrew the ratings "for commercial reasons." Fitch said in
May that it had a favorable view of the company's development
pipeline, including Wynn Boston Harbor.
The company's Wynn Palace casino resort in Macau is scheduled to
open Aug. 22, following two delays for the $4 billion project.
Revenue per available room fell 5.2% to $294 in Macau and rose
3.1% to $263 in Las Vegas.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 28, 2016 18:01 ET (22:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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