DOW JONES NEWSWIRES
Wynn Resorts Ltd. (WYNN) swung to a third-quarter loss on
impacts related to the early extinguishment of debt, but revenue
was boosted by continued strong growth in the Chinese gambling
enclave of Macau.
Shares slid 1.9% to $110.43 in after-hours trading although the
casino operator's earnings matched Wall Street's expectations and
revenue beat them. The stock, which reached a two-and-a-half-year
high Tuesday, had almost doubled this year as of the close on the
company's improved performance.
In Las Vegas, Wynn's revenue and profit rose 3.1% and 9.3%,
respectively. Meanwhile, the company's Wynn Macau Ltd. (1128.HK)
unit, which listed in Hong Kong a year ago, posted a 50% increase
in revenue while profit jumped 55%. Macau -- the source of
two-thirds of Wynn Resorts's revenue -- has seen sizzling gaming
activity.
Separately, Wynn Resorts said its board declared cash dividend
of $8 a share, which will cost the company some $1 billion.
For the latest quarter, Wynn reported a loss of $33.5 million,
or 27 cents a share, compared with a year-earlier profit of $34.2
million, or 28 cents a share. Excluding items such as the loss from
the extinguishment of debt, earnings per share rose to 39 cents
from 33 cents as net revenue climbed 30% to $1.01 billion.
Analysts estimated earnings of 39 cents per share on revenue of
$990.8 million, according to a poll by Thomson Reuters.
Operating margin rose to 13.1% from 10.3%.
Overall casino revenue, which provided three quarters of total
revenue, increased 36% while food and beverage revenue grew 19%.
Room revenue rose 11%.
The increased profit in Las Vegas was attributed mostly to
higher non-gambling revenue from the nightclub operations and the
recently opened Encore Beach Club and Surrender nightclub. The
occupancy rate rose to 87.8% from 83.9%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com