Wynn Resorts Ltd. beat analyst expectations for the first quarter, posting a sixfold profit increase behind major gains from its Macau operations and modest improvements in Las Vegas.
Additionally, CEO Steve Wynn anticipates commencing construction on a third Macau resort “any day now.” The new resort could cost between US$2 billion and US$3 billion, he says. The US$600 million Encore at Wynn Macau opens this week.
Overall, first quarter net profit rose to US$173.8 million, or $1.39 per share, compared with $27 million, or 22 cents per share, a year ago. Adjusting for one-time items, Wynn earned US$1.38 per share, beating the average analyst forecast of 74 cents.
Revenue at Wynn Macau rose 47% in the quarter, spurred by increasingly robust demand from Chinese gamblers. It achieved an ADR of US$307 in Macau, up 12% year over year, on occupancy of 88.6% and RevPAR that gained 6.3%.
In Las Vegas, hotel revenue grew 13.4% during the quarter, with ADR up 18.2% to US$240 on 87.9% occupancy.
On a conference call, Steve Wynn told analysts and reporters that the company’s policy toward online poker—its short-lived alliance with PokerStars was cut short last week when U.S. prosecutors indicted executives of the online gaming company on bank fraud charges—is up in the air for the time being. "We are trying to figure out what the hell the public policy is, and then we can have a corporate policy," Wynn says.
Wynn Resorts will pay a share dividend of US$0.50 on May 17.
Additionally, CEO Steve Wynn anticipates commencing construction on a third Macau resort “any day now.” The new resort could cost between US$2 billion and US$3 billion, he says. The US$600 million Encore at Wynn Macau opens this week.
Overall, first quarter net profit rose to US$173.8 million, or $1.39 per share, compared with $27 million, or 22 cents per share, a year ago. Adjusting for one-time items, Wynn earned US$1.38 per share, beating the average analyst forecast of 74 cents.
Revenue at Wynn Macau rose 47% in the quarter, spurred by increasingly robust demand from Chinese gamblers. It achieved an ADR of US$307 in Macau, up 12% year over year, on occupancy of 88.6% and RevPAR that gained 6.3%.
In Las Vegas, hotel revenue grew 13.4% during the quarter, with ADR up 18.2% to US$240 on 87.9% occupancy.
On a conference call, Steve Wynn told analysts and reporters that the company’s policy toward online poker—its short-lived alliance with PokerStars was cut short last week when U.S. prosecutors indicted executives of the online gaming company on bank fraud charges—is up in the air for the time being. "We are trying to figure out what the hell the public policy is, and then we can have a corporate policy," Wynn says.
Wynn Resorts will pay a share dividend of US$0.50 on May 17.