Facebook
Fark
Digg
Reddit
Stumble
Monday
18 July 2011
1:49 p.m.
Updated
18 July 2011 4:31 p.m.
Steve Wynn
Wynn Resorts once again posted a profit increase in the second quarter, thanks to booming business in Macau and an uptick in Las Vegas.
The Las Vegas-based casino operator reported profit of $200.8 million, or $1.60 per share, compared to $64.9 million, or 52 cents per share, in the same quarter last year.
Net revenue was $1.36 billion in the second quarter of this year compared to $1.03 billion in the same period of 2010. The company said the higher numbers were driven by revenue increases in both Macau and Las Vegas.
Net revenue at Wynn Resorts’ Las Vegas operations was $390.8 million, a 22.8 percent increase from the second quarter of 2010. The company reported earnings before interest, taxes, depreciation and amortization of $132.7 million, versus $65.1 million in the second quarter of 2010.
Marilyn Winn Spiegel, president of Wynn Las Vegas, said on Monday’s earnings conference call that each segment of the company’s Las Vegas resorts saw increases in revenue in the quarter.
Casino revenue in Las Vegas for the second quarter was $158.3 million, up 35 percent from the same period of 2010.
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 same period last year. Occupancy fell from 92.6 percent to 89.2 percent.
In Macau, net revenue totaled $976.5 million, a 36.7 increase from the $714.4 million generated in the second quarter of 2010. EBITDA in Macau increased 45.4 percent during the year-over-year period from $216.2 million to $314.3 million.
Food and beverage revenue increased 13 percent to $126 million for the quarter, with two-thirds of the revenue coming from Encore Beach Club, Winn said.
Retail revenue rose 6.5 percent to $22.8 million and entertainment revenue increased 22 percent to $19 million. Winn said the increase in entertainment was mainly because of added show dates for Garth Brooks.
“In the business that we are in, you don’t really sustain growth unless the non-casino part of the hotel reflects improvement," Wynn Resorts Chairman and CEO Steve Wynn said on Monday’s conference call. "The vitality in our business comes from the non-gaming portion. After all, slot machines and roulette tables, they are the same everywhere. "It's where they are and who the people are that are staying at the hotel that make the difference."
As for the current quarter, Wynn said the company expected July to be its worst month of 2011 in Las Vegas, but has seen better occupancy with higher rates than expected. Wynn, once again, reiterated that the company is not discounting room rates to fill rooms during the slower months.
“This place is not set for price-cutting. We’d be able to fill our rooms in an instant because they are so fancy. But you’ve got people coming in with their beers from 7-11 and they move their own bags and don’t eat in our fine dining. We can’t use them. This is not a place for folks that have that kind of economy mentality,” Wynn said.
Wynn said the company expects August to bring strong convention business at its Las Vegas properties.
In Macau, Wynn Resorts saw its net revenue total $976.5 million, a 36.7 increase from the $714.4 million generated in the second quarter of 2010. EBITDA in Macau increased 45.4 percent during the year-over-year period from $216.2 million to $314.3 million.
The average daily room rate for Wynn and Encore Macau was $314 for the second quarter, up from $287 in the second quarter of last year. Occupancy at the properties was 90.5 percent, compared to 81 percent a year ago.
Wynn was more tight-lipped about his Cotai resort on Monday’s conference call than in previous calls, but said the project is drawn and rendered and the process is “moving along nicely.” He did not give a timeline for development.
Wynn said the resort will include 1,500 suites, 500 table games, a theater and public entertainment.
Share
Discussion 3 comments
Comments are moderated by VegasInc editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy.
Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their VEGAS INC account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
Post a comment
Commenting requires registration.
If you have a LasVegasSun.com account, you are already registered.
Most Popular
- Viewed
- Discussed
- E-mailed
- Live from Billboard Music Awards: Stevie Wonder closes with ‘Superstition’; Adele wins 12 awards
- Firefighters extinguish blaze in east valley
- Cancer claims life of Bee Gees co-founder Robin Gibb, 62
- Travel business rebounding as agents adapt to tech-savvy generation
- My column: Legislative leader to unveil sweeping political reforms
one hotel generating nearly a billion dolllars in 3 months is incredible, macau is an absolute goldmine, city center if it had been built out there would pay for itself in less than 2 years.................wow
The haters will appear here but the bottom line is once again Mr. Wynn has proven he knows how to run high end operations.
He knows his customer and knows the business. When others are falling he continues to profit in this business.
30+ he has done well for Las Vegas and now other area's. Good job.
Steve Wynn just had an epic anti Obama rant go public please cover this story!!
Steve Wynn knows what he's doing. Vegas is very lucky to have Steve Wynn. He is to the growth of Las Vegas the last 25 years, as Walt Disney was to building Disneyland.
Let's just hope Steve and Sheldon do not abandon Las Vegas to focus on the mammoth profits in Asia. If that were to happen, that would truly be the death knell for Las Vegas for no other gaming company offers the excitement of these two entrepreneurs..
If he is doing so well, how come he is whining about Obama all they time? How come he doesn't complain about the Chinese Government? Does he like dictatorship over democracy? Hey Steve! Obama was elected by the American people.
Glad he can make ends meet by claiming other people's tips. Maybe he can team-up with Murdock?
msnbc.com reports that wynn bad mouthed obama because wynn didnt make enough money, DESPITE the reported profits in this news item. that botox works in strange ways!
Stevie is affected - calling Obama a socialist and otherwise crying while he takes his moneybags to the bank. A sad state of affairs - the man who said that the only one who could win at the Casinos was the owners - well he was a winner and a whinner! I think he is still stealing tips from line workers so he doesn't have to adequately pay his supervisors - maybe that is socialism?