Portfolio of Kimberly Johans

A collection of articles created during my stint as a journalist at The Macau Daily Times

Wynn results show 94 percent net drop, Macau doubles revenue

Posted by Kimberly on November 1, 2007

By Kimberly Johans
Published in The Macau Daily Times
November 1, 2007, page 6 (455 words)


Third quarter results for Wynn Resorts Ltd showed a drop of 94 percent in net income, from $715.7 million or $6.43 per share to $44.7 million or $0.41 per share, mainly due to the completion of the sale of the company’s Macau sub-concession, which had boosted results last year.
In 2006, Wynn Resorts sold the rights to develop a casino in Macau for $900 million to Publishing & Broadcasting Ltd. and Melco International Development Ltd.
Wynn Las Vegas’ table games win percentage of 26.4 percent was higher than the expected range of 21 percent to 24 percent and exceeded the third quarter of 2006 results of 22.3 percent.
The company earned 67 cents per share compared with $0.01 per share in the third quarter of 2006, whereby analysts estimated earnings of 60 cents a share, based on the average of nine projections compiled by Bloomberg.
Wynn’s report showed an almost doubling of net revenues from $318.1 million in the third quarter of 2006, to $653.4 million for this quarter, which was driven by the opening of Wynn Macau as well as strong results from their Las Vegas arm.
Net casino revenue for Las Vegas in this quarter were up by 14 percent, to $149.9 million compared with $131.9 million in the third quarter of 2006.
But their slot machine win per unit per day fell by 5.6 percent to $234 in the quarter, while their slot volume declined by 4.7 percent at Wynn Las Vegas.
Following the company’s financial report, shares in Wynn fell to $160 from their New York Stock Exchange close of $167.90.
The statement noted that Wynn Macau generated net revenues of $347.7 million without providing a comparison for the third quarter of 2006 because comparisons were not meaningful the resort opened the first week of September 2006 “and the third quarter 2006 results include only a partial quarter of operations.”
Table games turnover for the VIP segment was $9.8 billion for the period, 2.96 percent of turnover, and at the top end of the expected range of 2.7 percent and 3.0 percent.
Table games in the mass segment also saw a higher than average win percentage of 20.3 percent, above the expected range of 17 percent and 19 percent.
For the quarter, Wynn Macau generated an average daily room occupancy rate of 91.9 percent.
The remaining portion of the September 2007 expansion is expected to be completed within 90 to 100 days and will result in a total of approximately 380 tables games and 1,200 slot machines.
The statement also showed that the company had submitted an application to the Macau government for a concession of land in Cotai for future development, having recently reconfigured its site plans for 52 acres.


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