Wynn Resorts’ net rises with help from Macau

Oct 31, 2008 12:42 AM

Staff & Wire Reports |

Aided by a substantial jump in Macau revenues, Wynn Resorts Ltd. (WYNN) was able to show an increase in earnings over last year’s third fiscal quarter.

Too bad MGM MIRAGE Inc.(MGM) didn’t have a similar experience with its Macau casino. Or for that matter, Boyd Gaming Corp. (BYD) wasn’t able to call on a foreign investment to boost its financials.

Both the latter two casino companies, whose principal properties are in Las Vegas, felt the impact of the country’s slowing economy.

Wynn Resorts earned $51.1 million or $0.49 per share compared to last year’s $44.7 million or $0.41 per share.

Analysts had expected earnings to reach $0.58 per share.

Revenues for the period totaled $769.2 million, a 17.7% increase over last year’s $653.4 million. But the biggest chunk of that revenue came from the company’s Macau operation which registered $474.8 million, a jump of 27% over 2007.

The company said its Wynn Las Vegas casino revenues fell 4.6% and nongaming revenues were down 1.1%.

Throughout the presentation, Steve Wynn, chairman and CEO, focused on the company’s developments – Las Vegas Encore, scheduled to open on Dec. 22, and Macau Encore, set for later in 2009. Despite reports of shrinking credit availability throughout the country, Wynn said the company’s cash position, including its credit line, was solid enough to complete the two projects.