Wynn Resorts released its Q3 figures on Wednesday. The company recorded net income of $127.1m, primarily on the strength of (no surprise) its Macau operations. Revenues were $1.3b, up almost a third over the $1b recorded in the same period last year.
Revenue at Wynn Macau was even healthier, rising 41.7% over the same period last year to $951m, with net profit of $209.9m (up 84% over 2010). Macau VIP table game turnover was $31.4b, up 45%, with a win percentage of 2.95% (compared to 2.88% in 2010). Mass market table game turnover was up 16.4% to $704.3m, with a win rate of 27.7% (22.8% in 2010).
Things were not as rosy for Wynn in Las Vegas. While overall revenue rose 3.7% to $346.9m, casino revenue fell 8.3% to $126.9m. The fall was blamed in part on a table games win percentage that dropped from 22.8% to 18.3%. (Perhaps the extra $2m coming from Girls Gone Wild’s Joe Francis might help tip the balance in Wynn’s favor.)
Overall, gambling contributed $1.02b of Wynn Resorts’ revenue. Hotel rooms accounted for $120.1m, food and beverage $142.9m, and $105.5m came from entertainment, retail and other. Earnings per share came in at $1.01, which compares quite favorably with the 27¢ loss in the same period in 2010 (even if the company did pay down $64.2m in debt last year). But analysts were expecting a few pennies more, and despite CEO Steve Wynn’s claim that “our bottom line keeps climbing”, the stock fell more than 5% following the announcement, and continued to fall in after hours trading. Analysts…
Looking forward, Wynn mused about throwing his hat into the ring if Florida politicians make good on their promise to bring one or two destination casinos to the Miami area. “Hopefully there will be a business opportunity there.” Wynn has waged some bitter wars with Las Vegas Sands’ titan Sheldon Adelson over the years (although they sat within scratching distance of each other at Tuesday night’s Republican presidential nomination debate in Nevada). Adelson has already made it plain that he feels Miami can only sustain one casino license holder. Shaping up to be a good fight.