Wynn Resorts Q2 Results Miss Estimates

(RTTNews) - Wynn Resorts Limited (WYNN) reported Monday a profit for the second quarter that declined from last year, despite revenue growth, hurt by a loss on retirement of debt. Both adjusted earnings per share and quarterly revenues missed analysts' expectations.

Las Vegas, Nevada-based Wynn Resorts reported net income of $129.79 million or $1.28 per share for the second quarter, lower than $138.06 million or $1.37 per share on the prior-year quarter. Results for the latest quarter include a $26.6 million loss on the early retirement of debt.

Excluding items, adjusted earnings for the quarter were $152.92 million or $1.51 a share, compared to $138.95 million or $1.38 per share in the year-ago quarter.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $1.57 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew to $1.33 billion from $1.25 billion in the same quarter last year, but missed twenty-two Wall Street analysts' consensus estimate of $1.34 billion by a whisker.

The revenue growth was aided by 16.2 percent higher revenues from Las Vegas operations of $401.4 million, and a 2.6 percent revenue growth from Macau operations to $930.9 million.

Macau, the world's largest gambling market, is the only place in China where casinos are permitted. The Cotai area is seeing intense activity with the presence of rivals Las Vegas Sands Corp. (LVS) and Galaxy Entertainment Group Ltd.

Wynn currently constructing an integrated resort on the Cotai land in order to take on the competition in Macau. The resort, which is expected to open in the first half of 2016, has a construction budget of $4.0 billion.

At Macau, the company achieved an average daily rate of $314, down 1 percent from $317 reported last year, and occupancy at Wynn Macau improved to 95.5 percent from 90.0 percent a year ago.. Revenue per available room (REVPAR) rose 5 percent to $300 from last year, and gross non-casino revenues increased 3.3 percent to $99.9 million from a year ago.

At Las Vegas, net casino revenues surged 44.7 percent to $142.6 million, and gross non-casino revenues were up 3.9 percent to $302.1 million from last year. Room revenues were up 4.6 percent, and average daily rate rose 5.6 percent, while occupancy was down to 86.9 percent from last year's 87.6 percent.

Additionally, Wynn announced a quarterly cash dividend of $1.00 per common share, payable on August 26 to stockholders of record on August 12, 2013.

WYNN closed Friday's regular trading session at $130.98, up $2.47 on a volume of 1.14 million shares.