Wynn posts lower-than-expected profit, cites Macau decline
LOS ANGELES, Jan 31 (Reuters) - Hotel-casino operator Wynn Resorts Ltd on Thursday posted a quarterly profit that was below Wall Street's estimates as its share of the Macau market declined. Fourth-quarter profit, excluding items, totaled $118.2 million, or $1.17 per share, down from $194.4 million, or $1.55 per share, a year earlier.
The earnings fell short of the $1.25 cents a share expected by analysts, according to Thomson Reuters I/B/E/S.
"It wasn't a good quarter. They continued a significant decline in Macau due to market share loss to the Cotai strip, where Wynn's competitors own properties," said Chad Mollman, analyst with Morningstar Inc.
Surprisingly, the company's Las Vegas operations were the stronger asset in the last quarter, he said. With the rise of Macau as a gambling center and the slow U.S. economy, the fortunes of Las Vegas casinos have lagged.
Shares of Wynn Resorts fell slightly in after-hours trade, after closing at $125.22 on the Nasdaq.
Net revenue for the fourth quarter was $1.29 billion, compared with $1.34 billion a year earlier. Wynn said the decline was caused by 9.7 percent drop in revenue at its Macau operations, which was partially offset by a 12.1 percent increase at its Las Vegas operations.
Wynn doubled its dividend to $1.00 a share from 50 cents a share the previous quarter.