Wynn Resorts earns $52.4M during second quarter as revenues climb in Macau

Wynn Resorts earns $52.4M during second quarter

LAS VEGAS — Casino operator Wynn Resorts Ltd.’s second-quarter profit doubled to $52.4 million with help from its newest resort in the Chinese gambling enclave of Macau, the company said Thursday.

CEO Steve Wynn said the company has finished designing another new development in Macau, in its Cotai Strip, with 12 acres left over for further expansion.

“It gives us a chance to explore more things,” the billionaire said during a conference call with investors.

Wynn Resorts said it earned 42 cents per share during the quarter that ended June 30. That’s compared with $25.5 million, or 21 cents per share, a year earlier.

Revenue at the Las Vegas-based company rose to $1 billion for the quarter from $723.3 million a year earlier. Most of the boost came from Macau, where revenue climbed 74.1 percent with April’s opening of the Encore at Wynn Macau, which added hotel rooms and casino space.

Wynn’s second-quarter results beat expectations of analysts polled by Thomson Reuters for earnings of 41 cents per share on revenue of $992 million.

Wynn declined to reveal details on Cotai or the project’s cost, but he said the project would likely include 1,500 to 1,600 rooms, roughly 500 table games and about 1,300 slot machines. It is near Las Vegas Sands Corp. projects that are under way and near land owned by a partnership that includes MGM Resorts International.

“We’ve gone a notch up in every respect,” said Wynn. He said the design went faster than any of his previous projects.

The company announced a quarterly cash dividend of 25 cents per share payable Aug. 26 to shareholders who own stock Aug. 12.

Shares of Wynn dropped $2.75, 3.1 percent, to $85.10 in after-hours trading on Thursday after closing the day at $87.85.

Revenue of $714.4 million in Macau made up more than 71 percent of the company’s total revenue.

Wynn Resorts’ revenue also rose in Las Vegas, by 1.7 percent to $318.2 million.

It laid off 261 employees in there in mid-June, but restored previously reduced hours and salaries for those making less than $200,000 per year.

Wynn said the company planned to spend about $99 million to renovate the rooms in its two Las Vegas casinos. The Wynn Las Vegas opened in 2005 while its sister, Encore, opened at the end of 2008.

As of June 30, Wynn Resorts’ debt totaled $3.2 billion, including $2.5 billion in Las Vegas and $681 million in Macau, and it had $1.9 billion in cash.