Wynn 4Q profit down but revenue beats expectations

Published on NewsOK Modified: January 31, 2013 at 7:00 pm •  Published: January 31, 2013

In Las Vegas, the company said convention business is tracking above plan in rates and room nights, and sees the same kind of strength going on into 2014.

Wynn reported after the stock market closed Thursday that it earned $111.4 million, or $1.10 per share, for the quarter that ended Dec. 31. That is down from $190.5 million, or $1.52 per share, in the same quarter of the prior year. The company was weighed down by a $47.9 million jump in tax expenses due to the timing of dividend payments from Macau and other items. After adjusting for this, it earned $1.17 per share versus $1.55 per share.

Its total revenue fell to $1.29 billion from $1.34 billion. This was driven by a nearly 10 percent decline in Macau operations that was partially offset by a 12 percent increase in revenue from its Las Vegas operations.

Analysts polled by FactSet were expecting Wynn to earn $1.25 per share on revenue of $1.27 billion.

The company, based in Las Vegas, runs Wynn Las Vegas and Encore at Wynn Las Vegas. It also operates the Wynn Macau casino resort and Encore at Wynn Macau resort in China.

Its shares slipped 83 cents to $124.39 in after-hours trading following the release of the earnings report. The stock closed the regular session up $1.73 at $125.22.

Wynn said he was positioning the company to take advantage of the gambling boom in Macau over the long run, and to cash in on upscale "Urban Wynn" properties in cities like Philadelphia and Boston.