Wynn Resorts reports 3Q loss as it pays $64M debt
SAN FRANCISCO (AP) – Casino-resort operator Wynn Resorts Ltd.’s third-quarter revenue soared to $1 billion, including a nearly 50 percent increase at Wynn Macau, the company said Tuesday. But it recorded a loss including $64.2 million in costs for reducing its debt.
The Las Vegas-based company, run by billionaire Steve Wynn, also declared an $8-per-share dividend payable Dec. 7 to shareholders of record as of Nov. 23. The special dividend will distribute more than $900 million back to shareholders, nearly half of Wynn Resorts’ cash on hand.
The loss of $33.5 million, or 27 cents per share, for the period that ended Sept. 30 compares with net income of $34.2 million, or 28 cents per share, a year earlier.
Excluding one-time items, Wynn earned 39 cents per share, compared with 33 cents per share a year earlier. The adjusted earnings met analysts’ average estimate, while Wynn’s third-quarter revenue beat analysts’ expectation for $990.8 million.
In a call with investors Tuesday, Steve Wynn and other executives focused on the company’s plans for growth in Asia, where gambling revenue has soared as Asian economies rebound more quickly than some other parts of the world.
As he did the quarter before, Wynn discussed a planned resort in the Cotai peninsula of Macau. He said test borings are set this week and construction will begin within “a few weeks.”
Wynn relished the contrast between doing business in the United States and in China, where the government has committed “way in advance” to leases for the land under each Wynn casino.
“There’s stability, there’s predictability there,” said Wynn, who has made no secret of his frustration with the Obama administration. “I suggest it’s not like here where nobody knows what to expect tomorrow because of our political problems … the last two years.”
Last year’s third-quarter results do not include Encore at Wynn Macau, which opened in April and is the company’s fourth resort. Encore at Wynn Macau’s results are included in Wynn Macau’s results.
In Las Vegas, Wynn’s third-quarter revenue was $334.5 million, up 3.1 percent from a year earlier. But its Las Vegas gambling revenue fell 3.9 percent.
Wynn’s non-gambling revenue at all four of its resorts combined was $239.4 million, up 6.2 percent from 2009’s third quarter.
Shares fell $3.01, or 2.7 percent, to $109.50 after hours. They ended the regular session up $3.31 at $112.57.