Wynn Resorts Limited (NASDAQ: WYNN), developer, owner and operator of destination casino resorts, on Monday, reported weaker-than-expected first-quarter results despite robust growth in Macau.
The strong performance in Macau has given Wynn Resorts further incentive to develop business in the city, which has now become the world’s largest gambling destination. Macau, in fact, has helped U.S. operators over the last few years to offset weak performance in Las Vegas.
For the first quarter of 2012, Wynn Resorts reported revenue of $1.31 billion, which is slightly below the Street estimates of $1.33 billion. The company’s revenue in Las Vegas fell 8.1% due to lower hold or money won from gamblers. In Macau, Wynn’s revenue jumped an impressive 9.8%.
Net income for the first quarter of 2012 was $140.6 million, or $1.23 per share, compared with $173.8 million, or $1.39 per share reported for the same period in the previous year. Excluding one-time items, Wynn reported earnings per share of $1.33, well short of Street estimates of $1.41 per share.
Last week, Wynn Resorts received formal approval to construct a new Macau casino. Steve Wynn, CEO of Wynn Resorts, said that the new casino would not come cheap. He said that Wynn has to make the hotel on Cotai, in every sense of the word, irresistible to the guests and that is an expensive assignment to undertake. Wynn expects the property to dramatically increase non-casino revenue.
Commenting on the ongoing legal battle with Kazuo Okada, a Japanese billionaire and former shareholder, Wynn said that the company would continue to respond to lawsuits filed against his firm. Wynn said that the company will prosecute the case in Nevada for breach of fiduciary duty and conflict of interest with great gutso, armed with a number of facts that are documented and irrefutable.
Wynn Resorts shares fell 1.73% to $125.19 on Monday.
Recent Comments