International edition
September 22, 2021

Revenue came in at an even us$ 1 billion

Growth in Macau helps Wynn Resort double profit

(Macau).- A big increase in revenue in Macau helped Wynn Resorts double its second quarter profit, and things were even looking up a bit in Las Vegas, the casino operator reported this week.

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fter the close of trading, Wynn said that it earned us$ 52.4 million on the period, up from us$ 25.5 million, in the same quarter of 2009. On an adjusted basis, Wynn earned 52 cents a share, up from 9 cents. Revenue came in at an even us$ 1 billion, up from us$ 723.3 million on the back of a 74% increase in revenue at Wynn Macau.

The average estimate of analysts polled by FactSet Research had been for the company to earn 41 cents a share on revenue of us$ 995 million.

Wynn's best news came from Macau, the Chinese gambling enclave, where revenue spiked to us$ 714.4 million from $410.4 million. Wynn Macau's average daily room rate spiked to us$ 287 in the second quarter, up from us$ 263 even as occupancy fell to 81.3% from 86.7% largely due to the addition of hundreds of new rooms and villas. Revenue per available room, a key industry metric known as RevPAR, was us$ 234, up 2.5% above 2009 levels of us$ 228.

In Las Vegas, revenue was us$ 318.2 million, a gain of 1.7%, mostly on the back of non-gambling revenue from nightclubs and new amenities. The take at the casino fell almost 6% to us$ 117.2 million on lower table game and slot-play volume, and a drop in the house's winning percentage.

Room revenue fell 3.2% as the ADR fell to us$ 197 from us$ 218. Occupancy climbed to 92.6% from 86.6%, generating RevPAR of us$ 182, down from us$ 188 in the second quarter of 2009.

"We hope for continued improvement in Las Vegas or - let me put it different, we hope that we'll get smarter in Las Vegas in dealing with the peculiarities of this market, and this very, very mercurial, national economic market we're living with," said Steve Wynn, chief executive, in a conference call with investors. "The national economy and the political environment in the country as we head up to the elections [is] very, very touchy. And it is impacting all businesses."

Wynn also took the opportunity to take a potshot at the recently passed Wall Street reform bill. "In spite of the fact that there are undoubtedly some good things in it, it has the potential of being catastrophic [to] business, very much like the healthcare bill," he said. "You can decide whether the glass is half full, or half empty. I'm at the point where I hope we just don't tip the glass over."

The company also announced that its board of directors has approved a cash dividend for the quarter of 25 cents a share, payable on August 26 to stockholders of record on August 12.

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