Wynn Resorts earnings for 2nd quarter down at $129.8 million

Ulf Buchholz

The Wynn Macau is seen Aug. 17, 2011.

Steve Wynn

Steve Wynn

Las Vegas-based Wynn Resorts, which operates Wynn Las Vegas and Encore on the Strip as well as two properties in Macau, reported its second-quarter earnings Monday.

Company: Wynn Resorts Ltd. (NASDAQ: WYNN)

Revenue: $1.33 billion (up 0.6 percent from second quarter of 2012). Macau revenue was affected by low slot hold. While mass market table revenue was up 8.5 percent, it declined 1.6 percent in the VIP segment. Hotel occupancy was affected by the renovation of 600 rooms in the Wynn Macau tower. In Las Vegas, net revenue jumped 16.2 percent to $401.4 million for the quarter.

Earnings: $129.8 million (down 6 percent from second quarter of 2012). Earnings were off, in part, because the company retired debt early. The company also announced it will be issuing a $1-per-share dividend in August.

Earnings per share: $1.28 (down 6.6 percent from second quarter of 2012)

What it means: While Wynn earnings were not as spectacular as those of Las Vegas Sands due to lower holds in Macau, the company focused on construction of its new resort on the Cotai Strip, the Wynn Palace. “We’re behind in hold percentage, but not coin in,” Wynn Resorts Chairman Steve Wynn told investors on a conference call Monday.

Asked about reports that the government of Macau would open license renewal discussions in 2015, Wynn said he feels “sanguine and comfortable in being here and we intend to stay here.”

Wynn acknowledged “another nice quarter in Las Vegas,” where casino revenue was 44.7 percent higher to $142.6 million for the quarter and non-casino revenue was up 3.9 percent thanks to increases in room, food and beverage and retail offset slightly by increased entertainment costs.

Wynn ripped U.S. government accounts on economic recovery, calling it “a limp-wristed crawl out of a hole.” He said he will continue to compete to build hotel-casino properties in Philadelphia and Boston, planning what he calls “urban Wynn” hotels that will become destination resorts.

Quote: “It’s a great day in Macau. We’ve completed agreements for a guaranteed maximum price and opening date. We expect to open before Chinese New Year, 2016 and the final price will be just under $4 billion, all in.” — Steve Wynn