Wynn Resorts loses $5.2M in 4th qtr, earns $20.7 million for 2009

Wynn Resorts loses $5.2M during 4th qtr of 2009

LAS VEGAS — Casino operator Wynn Resorts Ltd. said Thursday that rising revenue at its resort in China’s gambling enclave of Macau helped narrow Wynn’s fourth-quarter loss to $5.2 million.

The quarterly profit also got a boost from Wynn’s new Encore Las Vegas resort, which opened in December 2008. In the quarter ending that month, it lost $159.6 million.

But 2009 overall was harder than 2008 for billionaire CEO Steve Wynn’s casino empire, as casino customers kept their spending in check during the recession. The Las Vegas-based company earned $20.7 million, or 17 cents per share, for the year, compared with $210.5 million in 2008.

The Encore boosted Wynn Resorts’ revenue in Las Vegas just 5.4 percent to $505.8 million in 2009, despite adding 90 table games and 800 slot machines.

Steve Wynn said he’s not optimistic about Las Vegas until the economy improves for working Americans — and for companies that book meetings in Sin City.

“I’m afraid to say that I think the outlook for 2010 is very conservative,” he said. “I don’t see any major change in the future. I don’t see it getting worse per se, but I do think that unless there is some signal from Washington that they can control the deficits, that not only Las Vegas but the country faces dire problems.”

Excluding one-time items, Wynn Resorts earned $10.3 million, or 8 cents per share, for the fourth quarter, which ended Dec. 31. Analysts forecast profit of 13 cents per share.

Its net revenue was $809.3 million, compared with $614.3 million a year earlier. Analysts expected revenue of $785 million.

Wynn’s revenue per available room, a key metric for lodging companies, was $233 in Macau, 2.9 percent less than a year earlier. In Las Vegas, it was $178, which was 20.6 percent less than in the fourth quarter of 2008.

The company’s quarterly operating income of $89 million in China’s gambling enclave, Macau, made up for operating losses of $56.7 million in Las Vegas.

“We’re more of a Chinese company than American company today as we’re having this call,” Wynn said. “I love it. Thank God for being outside the United States today. There isn’t an executive in the world that isn’t thrilled about being outside the United States today.”

And Macau will play an even bigger role in the company’s fortunes soon. The Encore at Wynn Macau — with restaurants, 410 suites, retail stores and casino space — is to open in April. The company said it has spent nearly $455 million developing and building the resort.

After that, Wynn Resorts plans to partner in a three-story waterfront casino in Philadelphia. Details about the development’s cost and timeline were not immediately available — the company disclosed a letter of intent this week — but Wynn said the property would not include a hotel and would serve customers who live nearby.

Wynn said it had $2 billion in cash and $3.6 billion in total debt as of the end of 2009.

Shares of Wynn Resorts fell 55 cents, less than 1 percent, to $62.25 after hours Thursday, after ending regular trading at $62.80, down less than 1 percent.