Wynn Swings To 3Q Loss On Debt Reduction; $1 Billion Dividend Planned

   DOW JONES NEWSWIRES 
 

Wynn Resorts Ltd. (WYNN) swung to a third-quarter loss on impacts related to the early extinguishment of debt, but revenue was boosted by continued strong growth in the Chinese gambling enclave of Macau.

Shares slid 1.9% to $110.43 in after-hours trading although the casino operator's earnings matched Wall Street's expectations and revenue beat them. The stock, which reached a two-and-a-half-year high Tuesday, had almost doubled this year as of the close on the company's improved performance.

In Las Vegas, Wynn's revenue and profit rose 3.1% and 9.3%, respectively. Meanwhile, the company's Wynn Macau Ltd. (1128.HK) unit, which listed in Hong Kong a year ago, posted a 50% increase in revenue while profit jumped 55%. Macau -- the source of two-thirds of Wynn Resorts's revenue -- has seen sizzling gaming activity.

Separately, Wynn Resorts said its board declared cash dividend of $8 a share, which will cost the company some $1 billion.

For the latest quarter, Wynn reported a loss of $33.5 million, or 27 cents a share, compared with a year-earlier profit of $34.2 million, or 28 cents a share. Excluding items such as the loss from the extinguishment of debt, earnings per share rose to 39 cents from 33 cents as net revenue climbed 30% to $1.01 billion.

Analysts estimated earnings of 39 cents per share on revenue of $990.8 million, according to a poll by Thomson Reuters.

Operating margin rose to 13.1% from 10.3%.

Overall casino revenue, which provided three quarters of total revenue, increased 36% while food and beverage revenue grew 19%. Room revenue rose 11%.

The increased profit in Las Vegas was attributed mostly to higher non-gambling revenue from the nightclub operations and the recently opened Encore Beach Club and Surrender nightclub. The occupancy rate rose to 87.8% from 83.9%.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]