With help from record gambling in Macau and “Lady Luck” at its two casinos in Las Vegas, Wynn Resorts Ltd. (WYNN) reported revenues and profits for the first quarter that ended on March 31 that easily beat expectations.
The company said net income rose to $203 million, or $2.00 per share, on revenues of $1.38 billion. A year earlier, revenues were $1.31 billion and net income $140.6 million or $1.23 per share.
Record gambling in Macau really boosted the company’s quarter with revenues jumping 4.4% to $992.1 million.
And with more luck at the gaming tables in Las Vegas, the company was able to report first quarter revenues increasing by 11% to $176.3 million. Also improving were room revenues that were up 4.8% to $91.5 million. The occupancy rate moved up to 82.9% from the previous year’s 79.3%.
In his review, Chairman and CEO Steve Wynn made reference to an improved mass transit system in Macau that would help the casinos increase their mass market traffic. His company, he said, was working with new junket operators to improve its VIP business.
Still to come for the company is a $4 billion casino/entertainment complex on the Cotai Strip. The development is expected to be operating in early 2016.
On the docket is a major effort in Massachusetts for a casino license in Boston-suburb of Everett. His company is competing with the operators of Suffolk Downs racetrack in East Boston for the one license to be granted in that part of the Commonwealth. Partnering with Suffolk Downs is Caesars Entertainment Corp. (CZR).
Another potential project is a casino in the city of Philadelphia, Pennsylvania, where regulators plan to offer the state’s final gaming license. There are four bidders seeking that license.
A profit during the first fiscal quarter last year for Boyd Gaming Corp. (BYD) was reversed in 2013, according to a report made last week.
The company said that it had lost $7.3 million or $0.08 per share compared to a profit in 2012 of $5.9 million or $0.07 per share.
However, with the addition of new properties in Kansas and elsewhere, the company said revenues jumped 16.4% to $737 million. Last year, revenues were $633.1 million.
When eliminating the costs of acquiring Peninsula Gaming LLC, the company showed a profit of $0.01 per share.
Still, said President and CEO Keith Smith “we saw positive momentum across our operations in March, driving first quarter results that were ahead of expectations.”
Although revenues were slightly lower in downtown Las Vegas, Smith said he was “encouraged by improvements” being made there.
As for Atlantic City where the company shares ownership of the Borgata with MGM Resorts International (MGM), the results showed reduced revenues. Total revenue was $165.6 million compared to last year’s $178.2 million.
However, Smith said that he believes the Borgata will “capture a sizable portion” of the Internet gaming market when it begins operating, possibly by year end.
Record-breaking revenues helped Bally Technologies Inc. (BYI) to report earnings that exceeded analyst expectations for the third fiscal quarter that ended on March 31.
The company posted net income of $38.4 million or $0.93 per share on revenues of $259.1 million. Last year’s comparison had revenues of $228.6 million and net profit of $29.9 million or $0.67 per share.
Also notable, said the company, was that gross margins improved to 65% from the previous 63 percent
Sale of gambling devices rose to 4,923 from last year’s 4,147 with a slight drop in average price of $16,051 from $17,073.
The company also raised its full-year forecast to $3.35 to $3.45 per share earnings. Previous guidance was $3.20 to $3.40.
A strong quarter was reported by machine manufacturer International Game Technology (IGT) for the company’s second fiscal quarter.
Revenues jumped 11% to $600 million while adjusted operating income moved up to $95.1 million or $0.36 per share from the previous year’s $79.5 million or $0.27 per share. Last year’s revenues were $541 million.
CEO Patti Hart cited “momentum” as “demonstrating the strength of our comprehensive strategy – leveraging our core business, broadening the distribution of our premier content and generating shareholder returns.”
Machine sales during the period increased 68% to 8,400 while the company’s social gaming activities, including its DoubleDown Internet company, rose 94% to $66.7 million from last year’s $34.3 million.
As for the year, the company said it expects earnings per share to be between $1.26 and $1.32.
Churchill Downs Inc. (CHDN) reported earnings of $1.1 million or $0.06 per share compared to $1.4 million or $0.08 per share last year. Revenues increased to $148 million from $138 million.
Dover Downs Gaming & Entertainment Inc. (DDE) reported a loss of $283,000 or $0.01 per share compared to last year’s profit of $2.3 million or $0.07 per share. Revenues fell to $50 million from $64 million.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].