Wynn Second-Quarter Profit Jumps on Macau, Vegas Recovery
Wynn Resorts Ltd. (WYNN) said second- quarter profit more than doubled, beating analysts’ estimates as the owner of the Wynn and Encore casinos expanded in China and benefited from a recovery in Las Vegas.
Net income climbed to $122 million, or 97 cents a share, from $52.4 million, or 42 cents, a year ago, Las Vegas-based Wynn said today in a statement. Profit excluding some items was $1.60, beating the $1.03 average of 23 analysts’ estimates.
Macau is booming while Las Vegas recovers from its steepest gambling and convention decline. Wynn opened Encore Macau in April 2010, doubling its presence in the world’s biggest gambling market, where casino betting surged 58 percent last year and 45 percent in the six months ended June 30.
Second-quarter cash flow, measured as adjusted property earnings before interest, taxes, depreciation and amortization, jumped 59 percent to $447 million, beating the $353.7 million analysts estimated. Ebitda for Macau climbed 45 percent to $314.3 million and for Las Vegas, the biggest U.S. casino city, doubled to $132.7 million.
Wynn rose $2.27 percent to $164.89 at 4:30 p.m. New York time in Nasdaq Stock Market trading. Wynn Macau Ltd. rose 25 Hong Kong cents to HK$26.45 in Asia. Wynn listed part of the Macau unit in October 2009.
Revenue jumped 37 percent in Macau and 23 percent in Las Vegas, boosting total sales 32 percent to $1.37 billion and beating the $1.27 billion analysts projected in a Bloomberg survey.
Gambling in Macau has surged since the government ended Stanley Ho’s 40-year monopoly and let other companies, including Wynn, Las Vegas Sands Corp. (LVS) and MGM Resorts International (MGM), build resorts that attract Chinese mainlanders.
Overall Las Vegas Strip gambling revenue climbed 29 percent to $580.4 million in May, according to data from the Nevada Gaming Commission. Visitation rose 4.7 percent in the first five months of 2011, led by an 8.1 percent increase in convention attendance, which has increased room rates and occupancy, according to the Las Vegas Convention & Visitors Authority.
Wynn said its Las Vegas average daily room rate rose 22 percent in the second quarter. Occupancy fell to 89.2 percent, from 92.6 percent a year earlier.
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