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Wynn Resorts more that doubles second-quarter profit
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Steve Wynn
Wynn Resorts Ltd. chairman and CEO says Obama's policies have him wary
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LAS VEGAS REVIEW-JOURNAL
Casino operator Wynn Resorts Ltd. continued to benefit from its casinos in Macau, and a rebound in Las Vegas as double-digit increases in revenues across the board helped the company more than double its second-quarter profit.
Wynn Resorts on Monday reported earnings of $122 million, or 97 cents a share, in the three months ended June 30, up from $52.4 million, or 42 cents a share, a year earlier.
On an adjusted basis, eliminating special charges, the Las Vegas-based company would have earned $200.8 million, or $1.60 a share, up from $64.9 million, or 52 cents.
Revenue rose 32 percent to $1.36 billion from $1.03 billion. Analysts surveyed by Yahoo Finance had expected the company to earn 99 cents a share on revenue of $1.26 billion.
"Once again, the numbers were spectacular," Steve Wynn, chairman and CEO of Wynn Resorts, said in a conference call with analysts Monday. "We are all heartened by the results."
Net revenues at Wynn Resorts' Las Vegas operation was $390.8 million, a 22.8 percent increase from the second quarter of last year.
The company reported EBITDA, or earnings before interest, taxes, depreciation and amortization, of $132.7 million, versus $65.1 million from the same period of 2010.
Casino revenue from the second quarter was $158.3 million, up 35.1 percent.
"We've benefited from a very good hold percentage," Wynn said.
Room revenue was up 15.5 percent to $91 million, with an average daily room rate of $240 at Wynn and Encore, an increase from $197 in the second quarter of 2010. Occupancy fell from 92.6 percent to 89.2 percent.
"It was an amazing quarter, with casino revenues up 35 percent," said Marilyn Spiegel, president of Wynn and Encore. "Volume was up in baccarat, table games and even slot machines. We had an amazing hold in baccarat."
Spiegel said the $91 million in room revenue was the "highest cash room revenue ever at Wynn Las Vegas."
Food and beverage revenues increased 13 percent, to $126 million, primarily driven by higher nightclub revenues and strong catering and restaurant revenues. Retail revenues were $22.8 million in the quarter, up 6.5 percent from last year.
Entertainment revenues increased 22 percent, to $19 million, from the second quarter of 2010. Spiegel attributed the increase primarily to increased revenues from Garth Brooks, who staged shows at Wynn Las Vegas in the second quarter.
In Macau, revenues were $976.5 million, a 36.7 percent increase from the $714.4 million generated in the second quarter of 2010. Adjusted property EBITDA was $314.3 million, up 45.4 percent, from $216.2 million in the same period a year earlier.
While Macau has driven the growth of the company over the last few years, Wynn told analysts Monday that he is interested in building a resort in Singapore, but is prepared to wait until March 2017 because of an exclusivity period granted by the government to incumbent operators, Las Vegas Sands Corp. and Genting.
"It's easy to say, Singapore is exciting," Wynn said. "If we ever had the chance to be in Singapore we would be thrilled and delighted to bring our best ever (hotel-casino) there."
In response to a question from Bill Lerner, an analyst with Union Gaming Research in Las Vegas, Wynn blamed the Obama administration for his caution in expanding his Las Vegas properties, Wynn and Encore.
He said he has had a host of opportunities and could create 10,000 more jobs at his Las Vegas properties, which would create and additional 20,000 jobs in the community.
"I believe in Las Vegas," Wynn said. "I'm afraid to do anything in the current political climate in this country."
He said the business community sits in "fear" of the president. Wynn, who described President Barack Obama as a socialist, said, "until he's gone, everyone is sitting on their thumbs."
Wynn also announced a quarterly cash dividend of 50 cents per share. Shares of Wynn Resorts shares bounced 2.27 percent, or $3.80, to $168.30, building on a gain of 1.4 percent, or $2.27, to $164.89 during the day ahead of the results Monday.
Wynn Resorts traded 3.29 million shares on Monday, well above its daily average of 1.97 million. The shares, which trade on the Nasdaq Global Select Market, have more than doubled in price over the past year.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
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Amazing hold percentage? uhhh don't you have to give the marks at least the slight hope of winning? Apparently not as the joints are packed. Even I go in and drop a c note once a month.
Wynn is right, but it's not JUST Obama: It's the whole political establishment which can't make decisions because it's members are interested #1 in getting re-elected or moving up the political food chain.
WHY ISN't Wynn's Rant against the Socialist Obama a headline. Come RJ let the people of Vegas hear the truth about Obama and Reid and the real reasons our economy is the worst in the USA!
It's a smart business decision not to build in the U.S. and instead to build in high economic growth areas of the world. I've owned my own business for the past 9 years and I completely agree with Mr. Wynn: this President is a socialist, he does not like America, he wants to expand the power of the federal government, and he wants to loot any money he can from the productive citizens and give it to the fellow looters. My company writes business plans I currenlty see the U.S. as a rotting shell of its former greatness. I love this county, I served her in the military during the 1st Gulf War. However, I'm saddened by the election of this President, because within this group of what I originally assummed were nieve voters, are actually leftists who believe in his radical, European-style ideology. I've tried my best to keep my employees as I've struggled through the recession and I remain loyal to the U.S. But, the American people better realize their error in their decision to elect this President. I'm not saying that you have vote republican, but at least elect somebody more moderate and mainstream.
Gary aint betting his own $$$, Gys that bet their own do better. Gary is smart for sure, but not as smart as Wynn.
the faster the "change" regime taxes and regulates [change-speak = "progress"] american employer-taxpayers offshore, the more middle class jobs are created there. the empty suit promised to create jobs but it didn't say the jobs would be in the u.s.. as to "missing" wynn, certainly he's added more class to the lv strip than the all other corporate operators combined. notice t.i., mirage, bellagio, and wynn resorts.
Better Yet, Wynn move on over to Macau.......... No One here would EVER miss you !!!!!!!!!!!!!!!
Mr,Wynn how do you do it ? Gary Lovechecks has 52 casinos and cant turn a prfit, you have 4 . Keep up the good work at the house of WYNN, Teddy D.