Wynn's 2Q profit more than doubles, beats street

AP News
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Posted: Jul 18, 2011 6:25 PM
Wynn's 2Q profit more than doubles, beats street

Casino operator Wynn Resorts Ltd. said Monday that stronger gambling business in both Las Vegas and Asia helped more than double its second-quarter net income.

The company, led by billionaire CEO Steve Wynn, reported after the markets closed that it earned $122 million, or 97 cents per share, for the quarter that ended June 30. That's up from $52.4 million, or 42 cents per share, a year earlier.

After adjusting for a charitable contribution and other one-time items, the company earned $1.60 per share, compared with 52 cents per share a year earlier.

Wynn's revenue rose from $1.03 billion to $1.37 billion for the quarter.

The results easily beat analysts' average forecast for adjusted earnings of $1.02 per share on revenue of $1.26 billion, according to data from FactSet.

Morningstar analyst Chad Mollman said the results were a huge beat. And while China produces the bulk of its business _ more than 70 percent _ the turnaround in Vegas is critical to Wynn because it still derives more of its business there than competitor Las Vegas Sands.

The news sent Wynn's shares soaring after hours.

The company operates two casinos in Las Vegas and two in Macau, where it opened its first casino in 2010. It is poised to build a third property in Macau, the only part of China where gambling is legal, pending government approval. Wynn said the review process is moving along on schedule.

The company said revenue at Wynn Macau rose nearly 37 percent. Wynn's revenue from Las Vegas operations rose nearly 23 percent, including a notable jump in non-casino revenue, which benefited from higher room rates as demand picked up.

"The numbers speak for themselves," Steve Wynn told investors during a call Monday.

Shares of Wynn Resorts rose $3.87, more than 2 percent, to $168.76 in after-hours trading.