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Strong Macau performance lifts Wynn Resorts in Q3

TAGs: Wynn Resorts

Net income for Wynn Resorts, Limited rose to $219.8 million in the third quarter, more than double the $106 million posted last year for the same period.

Strong Macau performance lifts Wynn Resorts in Q3Net income attributable to the company also saw an impressive gain, to $156.1 million, a 95.7% increase from the third quarter of 2017. In its press release, the company said the increase “was primarily due to an increase in operating income from Wynn Palace and Wynn Macau, offset by a decrease in our Las Vegas Operations.”

Combined, the two Macau casino resorts had an operating income of $260.5 million, 70.2% higher than the same period last year. Las Vegas operating income, meanwhile, declined to $22.8 million, from $76.8 million in July to September of 2017.

Total operating revenue was $1.71 billion, a 10.2% increase from the same period last year. Adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) was $504.4 million, a 6.6% increase from the corresponding period last year.

Adjusted net income attributable to Wynn Resorts was $182.3 million, which made for $1.68 earnings per share, compared to the third quarter of last year’s adjusted net income attributable to the company, of $155.8 million or $1.52 earnings per share.

In spite of the strong showing, CNBC noted that Wynn Resorts shares fell more than 12% during after-trading hours. Explaining such a decline, the financial news outlet said it had missed estimates for its quarterly earnings, of $1.69 a share.

For the first nine months of the year, Wynn Resorts net income was $287.6 million, lower than the $345.3 million posted from January to September of last year. Operating revenue for the first nine months was $5.03 billion, 13% higher year on year.

Among the company’s current projects is the Encore Boston Harbor integrated resort in Everett, Massachusetts, adjacent to Boston along the Mystic River, set to open mid-2019 at a total cost of $2.6 billion.

Wynn Las Vegas is also undergoing changes, such as the allocation of 430,000 square feet of additional meeting and convention space, to be ready by the first quarter of 2020, as well as the reconfiguration of its golf course, costing $415 million and scheduled for reopening by the fourth quarter of next year.

A reconfiguration of the Wynn Club gaming area of Wynn Macau, which will hold about 40 mass market table games and other amenities, is budgeted at $62 million.

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