LAS VEGAS (dpa-AFX) - Wynn Resorts Ltd (WYNN) Tuesday reported an increase in third-quarter profit, driven mainly on lower expenses and growth in its Las Vegas casinos, offsetting a slide in Macau operations. Quarterly earnings topped Wall Street estimates, while revenues were in line with expectations.
Wynn announced a 20 percent increase in quarterly dividend to $1.50 per share and announced an additional cash dividend of $1.00 per share.
Macau, the only place in China where casinos are legal, has largely been a boon for casino operators such as Wynn and bigger rival Las Vegas Sands (LVS), as customers throng the casinos for table games and slotting machines. But a crackdown on corruption in China has somewhat kept off prospective gamblers, and a recent smoking ban could act as a further dampener.
During the quarter, Wynn's revenue from its Macau operations slid 5.6 percent from a year ago.
In Macau, Wynn's table games turnover in the VIP segment fell 17.3 percent from last year.
Revenues in Wynn's Las Vegas operations climbed 9 percent, led by a near 11 percent climb in casino revenues.
Overall, the company's revenues for the third quarter slid to $1.37 billion from $1.39 billion in the prior year. On average, 18 analysts polled by Thomson Reuters expected revenues of $1.37 billion for the quarter.
Wynn, based in Las Vegas, Nevada, posted quarterly net earnings of $191.4 million or $1.88 per share, compared with $182 million or $1.79 per share last year.
Excluding items, adjusted earnings for the quarter were $1.95 per share, compared with $1.84 per share a year ago. Nineteen analysts had a consensus earnings estimate of $1.84 per share for the quarter. Analysts' estimates typically exclude special items.
Total operating expenses for the quarter dropped to $1.04 billion from $1.08 million last year, led by lower costs toward casino, amortization and depreciation.
Wynn is constructing Wynn Palace, a near $4 billion integrated resort on Cotai in Macau, which is expected to open in the first half of 2016.
In mid-October, Las Vegas Sands Corp (LVS) reported a weaker-than-expected increase in quarterly profit, due mainly to a decline in revenue from some of its operations in Macau.
WYNN closed Tuesday at $185.25, up $1.58 or 0.86%, on a volume of 1.49 million shares on the Nasdaq. In after hours, the stock dropped $1.30 or 0.70% at $183.95.
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