uring the quarter, which ended December 31, 2008, Wynn Resorts’ net revenue was us$ 614.3 million, compared to us$ 711.3 million in the same period of 2007. The company attributed the decrease to a decline in the number of gamblers, a lower hold percentage and a reduction in non-gaming revenues in Las Vegas.
Las Vegas net casino revenue was us$ 90.7 million for the quarter, compared to us$ 160 million in 2007. Non-casino revenues in Las Vegas fell 16.9 % to us$ 171.9 million during the quarter. Room occupancy at Wynn Las Vegas decreased from 94.3 % to 79.7 %. Average daily room rates dropped from us$ 298 to us$ 281.
“There’s no good news. Business is tough in Las Vegas” owner Steve Wynn said in an earnings call today. “We are in the mode of protecting our culture, protecting our employees and seeing this thing through but it’s not a very good time to make money.”
Wynn also said cutbacks in consumer spending have affected his luxury resorts.
“People with money who stay at a hotel like ours are being very careful if they have money. It may be one of the reasons some of the lower-end places perform a little better than a high-end place like Wynn or Encore,” Wynn said.
Wynn said during the call that the company has us$ 5 billion in assets and owes us$ 2.8 billion. Aside from Wynn Las Vegas and Encore Las Vegas, Wynn Resorts owns a 600-room hotel and casino in Macau and has begun construction on the us$ 700 million Encore at Wynn Macau.
Earlier this month, Wynn initiated a cost-reduction program for its Las Vegas properties that includes salary reductions for salaried employees, reduced work weeks for full-time hourly workers, the elimination of 2009 bonuses and a suspension of the company match to employee 401(k) plans. The plan is expected to save the company us$ 75 to us$ 100 million a year.
Wynn president Andrew Pascal said the plan is now saving the company us$ 250,000 a day. Shares of Wynn Resorts were up nearly 11 % during normal trading on the New York Stock Exchange but tumbled us$ 4.84, or nearly 19 %, in after-hours trading. The company released its earnings after the close of the trading day.