LOS ANGELES (Reuters) - Casino operator Wynn Resorts Ltd's (WYNN.O) quarterly profit met Wall Street estimates as revenue in Macau rose 50 percent and it made money on nightclubs in Las Vegas.
The company also said it would pay a cash dividend of $8 per share on December 7. Its shares, which have nearly doubled so far this year, fell about 1.8 percent.
"I think there was a lot of talk in the market that the special dividend was coming," said Hudson Securities analyst Robert LaFleur. "Folks maybe thought it would be higher."
Gambling revenue has soared this year in Macau, the only place in China where gambling is legal, while the Las Vegas Strip has grappled with lackluster demand and a glut of new hotel rooms and casinos.
"I believe we've seen the bottom in Las Vegas," Chief Executive Officer Steve Wynn said on a conference call. "I don't know when it's going to get better, but I don't think it's going to get worse."
He also said October, which includes China's Golden Week holiday, was Wynn's best month ever in Macau. "We made over $90 million," Wynn said.
The company, which operates two casino-resorts in Macau and two in Las Vegas, reported a third-quarter net loss of $33.5 million, or 27 cents per share, compared with net income of $34.2 million, or 28 cents per share, a year earlier.
Excluding items such as a $64.2 million charge for early repayment of debt, Wynn earned 39 cents a share, matching the average analyst estimate, according to Thomson Reuters I/B/E/S.
"The results were solid," LaFleur said. "Vegas was a bit stronger than we were looking for on the strength of their nightclubs, of all things."
Net revenue rose 29 percent to $1 billion. Analysts had expected $990.8 million.
Wynn's revenue in Las Vegas rose 3 percent, while adjusted property earnings rose 9.3 percent due mainly to higher non-gambling revenue.
Property earnings in Macau rose 54.5 percent.
"The slow, gradual improvement that we expected in Vegas is playing out," said Morningstar analyst Michelle Chang. "And growth in Macau is exceeding our expectations."
Wynn said the company is close to completing design work on a third Macau resort, which he said could begin construction next year and be up and running by 2015. He said the project would likely have a budget between $2 billion and $3 billion.
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The company also said it would pay a cash dividend of $8 per share on December 7. Its shares, which have nearly doubled so far this year, fell about 1.8 percent.
"I think there was a lot of talk in the market that the special dividend was coming," said Hudson Securities analyst Robert LaFleur. "Folks maybe thought it would be higher."
Gambling revenue has soared this year in Macau, the only place in China where gambling is legal, while the Las Vegas Strip has grappled with lackluster demand and a glut of new hotel rooms and casinos.
"I believe we've seen the bottom in Las Vegas," Chief Executive Officer Steve Wynn said on a conference call. "I don't know when it's going to get better, but I don't think it's going to get worse."
He also said October, which includes China's Golden Week holiday, was Wynn's best month ever in Macau. "We made over $90 million," Wynn said.
The company, which operates two casino-resorts in Macau and two in Las Vegas, reported a third-quarter net loss of $33.5 million, or 27 cents per share, compared with net income of $34.2 million, or 28 cents per share, a year earlier.
Excluding items such as a $64.2 million charge for early repayment of debt, Wynn earned 39 cents a share, matching the average analyst estimate, according to Thomson Reuters I/B/E/S.
"The results were solid," LaFleur said. "Vegas was a bit stronger than we were looking for on the strength of their nightclubs, of all things."
Net revenue rose 29 percent to $1 billion. Analysts had expected $990.8 million.
Wynn's revenue in Las Vegas rose 3 percent, while adjusted property earnings rose 9.3 percent due mainly to higher non-gambling revenue.
Property earnings in Macau rose 54.5 percent.
"The slow, gradual improvement that we expected in Vegas is playing out," said Morningstar analyst Michelle Chang. "And growth in Macau is exceeding our expectations."
Wynn said the company is close to completing design work on a third Macau resort, which he said could begin construction next year and be up and running by 2015. He said the project would likely have a budget between $2 billion and $3 billion.
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