Wynn Resorts earns $204m in 2Q

By Brad Allen
Casino operator Wynn Resorts Ltd posted second quarter revenue of $1.4bn, with earnings of $204m; a year-on-year growth of 54%.

The stellar performance was powered by the firm's Vegas properties Wynn Las Vegas and Encore, which delivered revenue rises of 12.5%.

Casino revenue accounted for the lion's share, increasing by 28% to $182.5m, while revenue from hotel rooms grew 7.3% to $107.9m.

The $454.4m revenue generate by the two Vegas properties accounted for just 32% of the company's total $1.4bn revenue.

Wynn's two casinos in the gambling haven of Macau generated $960.7m, although growth was substantially lower at 3%.

The Asian properties were affected by a stuttering wider market in Macau, which saw a 3.7% drop in gaming revenues for June, thanks to a World Cup-inspired focus on sports betting.

Regardless, earnings per share were a higher-than-expected $2.11; substantially better than Wynn's main competitor Las Vegas Sands which reported earnings per share of $0.85 two weeks ago.

Wynn said the current business volume makes him confident the company will see a healthy return on the under-construction $4bn Wynn Palace, that is expected to open by February 2016 in the Macau Cotai Strip region.

“We build houses of brick, which takes longer than some of the others, but they’re built for the long term,” said a Wynn spokesperson.

Wynn Resorts stock has increased by 4% on the Nasdaq, and the company will issue a cash dividend of $1.25 per common share on 26 August.

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