Casino operator Wynn Resorts’ net income falls in 2nd qtr but tops analyst expectations

Wynn Resorts’ 2Q profit falls but beats estimates

LAS VEGAS — Casino operator Wynn Resorts Ltd. said Thursday its second-quarter net income fell 91 percent, hurt by lower gambling revenue and the continuing costs of opening the Encore at Wynn Las Vegas casino, but the profit topped forecasts.

The company, run by billionaire and major stockholder Steve Wynn, reported profit of $25.5 million, or 21 cents per share, down from $272 million, or $2.42 per share last year. Adjusted to exclude one-time items, net income totaled 9 cents per share. That beat analyst expectations of a penny loss per share.

Revenue fell to $723.3 million, short of analysts’ prediction of $739.3 million and 12.3 percent below last year’s second-quarter revenue of $825.2 million.

Wynn Resorts operates casinos and hotels in Las Vegas and the Chinese island gambling enclave of Macau.

Casino revenue in Las Vegas rose 3 percent to $124.3 million, while non-casino revenue rose 9 percent to $231.9 million. Revenue in Macau fell 23 percent to $410.4 million from $529.9 million last year.

The company said its Las Vegas results are not comparable with a year ago because it opened its second resort there only in December.

Last week, Wynn filed for a possible initial public offering of its Macau assets on the Hong Kong Stock Exchange. The company is building the $650 million Encore at Wynn Macau, due to open next year, with 600 rooms and suites along with casino, restaurant, retail and lounge space.

Casino operators have suffered with the drop-off in tourist trade amid the recession.