Wynn Resorts’ Profit Tops Estimates as Las Vegas SoarsChristopher Palmeri
Wynn Resorts Ltd., the casino company founded by Steve Wynn, posted second-quarter profit that beat analysts’ projections as increased gambling in Las Vegas helped overcome tepid growth in Macau.
Earnings excluding some items increased to $2.11 a share, beating the $2.03 average of 18 analysts’ estimates compiled by Bloomberg. Revenue gained 6 percent to $1.41 billion, the Las Vegas-based company said yesterday in a statement. Analysts had anticipated an average of $1.43 billion.
Revenue from the company’s Las Vegas operations climbed 13 percent, while business in Macau, the Chinese enclave, grew by 3.2 percent. Wynn and other operators are coping with a decline in betting by Chinese high-rollers skittish about the mainland economy and a crackdown on the use of debit cards in casinos.
Wynn rose 3.1 percent yesterday to $217.41 in New York. The shares have gained 12 percent this year.
Net income increased 57 percent to $203.9 million, or $2 a share, from $129.8 million, or $1.28, the company said.
Wynn’s growth in Macau trailed the industry’s in the quarter. Total gambling revenue in Macau rose 5.5 percent to 90.9 billion patacas ($11.4 billion), according to Bloomberg Industries research.
The company is building a second Macau resort, the $4 billion Wynn Palace, scheduled to open in the first half of 2016.