Wynn Resorts Swings to Profit

Wynn Resorts Ltd. swung to a first-quarter profit even as it missed revenue projections, dragged down by its Macau operations.

Still, the casino operator reported its smallest quarterly decline in revenue from Macau since the third quarter of 2014. The results follow the release of Macau government gambling figures for April that showed a smaller-than-anticipated decline, fueling hopes that the worst of times were behind for Macau.

Las Vegas-based Wynn on Thursday reported net revenue from its Macau operations fell 14% in the latest period to $608.2 million.

Gambling revenue in the Chinese semiautonomous territory, the only place in China where gambling is legal, has been on a downward spiral since June 2014, according to figures from Macau's Gaming Inspection and Coordination Bureau.

VIP table games turnover, or the sum of all losing rolling chip wagers in the segment, dropped 21% to $13.47 billion. Revenue per available room, a closely watched industry metric, fell 5% to $307 as average daily rates, and occupancy declined.

Meanwhile, revenue from its Las Vegas operations improved 0.7% to $389.4 million, as noncasino revenues, before such promotional allowances as free hotel stays, edged up 0.5%.

Room revenues rose 5.5% as higher average daily rates offset a decline in occupancy, while revenue per available room, a closely watched industry metric, rose 3.4% to $243.

The results were roughly in line with the company's preliminary results, released last month.

Over all, Wynn reported a profit of $75.2 million, or 74 cents a share, compared with a year-earlier loss of $44.6 million, or 44 cents a share. Excluding opening costs and other items, profit rose to $1.07 a share from 70 cents a year earlier.

Net revenue fell 9% to $997.7 million.

Analysts surveyed by Thomson Reuters had projected 83 cents a share on $998.5 million in revenue.

Wynn ended the quarter with about $2.37 billion in cash and $9.41 billion in debt, including $4.2 billion from Macau.

In addition to its majority stake in Wynn Macau and its Las Vegas casino, Wynn is developing another casino in Everett, Mass., north of Boston. And Wynn Palace, a $4 billion hotel in Cotai, a strip of reclaimed swampland in Macau that has become prime ground for megadevelopments, is still scheduled to open in the third quarter.

Wynn's shares, down 23% over the past 12 months, rose 1% to $90.60 in after-hours trading.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

May 05, 2016 20:25 ET (00:25 GMT)

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