Portfolio of Kimberly Johans

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

Wynn profits more than triple for second quarter

Posted by Kimberly on August 1, 2008

By Kimberly Johans
Published in The Macau Daily Times
August 01, 2008 (388 words)

Macau’s status as the world’s gambling city was firmly entrenched with Wynn Resorts showing their second-quarter earnings in 2008, had more than tripled compared to the same period last year. This was mainly due to a tax windfall and strong growth in revenue from its Macau property, despite a dip in sales from their hometown.
Earnings for the quarter ending June 30 jumped to $272 million, or $2.42 per share from $89.6 million, or 82 cents per share during the same period last year.
According to Wynn’s statement, this was a result of higher earnings from Wynn Macau and a $140.7 million deferred tax benefit recorded during the quarter.
Adjusted net income in the second quarter was $124.3 million, or $1.11 per diluted share, compared with an adjusted net income of $100.8 million, or $0.92 per diluted share in the second quarter of 2007.
With regard to the company’s tax benefits, the statement issued showed that during the quarter, Wynn Resorts completed a study of the taxes, levies and obligations assessed on its Macau operations under Macau law and its Macau Gaming Concession, which resulted in the $140.7 million deferred tax benefit.
There was a 20 percent increase in revenue for the second quarter, to $825.2 million, compared with $687.5 million in the same period of 2007, driven primarily by a 50.3 percent increase in revenues from Wynn Macau. Meanwhile, Wynn’s Las Vegas revenue dropped 24 percent.
Wynn Macau generated revenues of $529.9 million in the second quarter of 2008 compared with $325.5 million during that period last year.
Adjusted property earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 67.5 percent to $155.2 million compared to $92.7 million compared to the year-prior quarter.
Wynn Macau’s expansion was completed December last year, adding approximately 75,000 square feet of gaming space and 20,000 square feet of retail space.
Meanwhile, Wynn Las Vegas has an EBITDA of $81.8 million in this year’s second quarter, compared with $115.3 million over the same period in 2007. Results showed a drop in table games and slot machine earnings.
Steve Wynn is planning to raise additional funds of $3 billion via a listing on the Hong Kong stock exchange to fund Wynn Macau’s expansion.
Encore at Wynn Macau commenced construction in 2007 and is expected to open up in the first half of 2010.

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