Wynn Resorts 3Q profit rises 14 percent

LAS VEGAS - Casino company Wynn Resorts Ltd. on Thursday reported third quarter income up 14 percent, based on strong earnings in Macau, in China, but the company isn't planning new projects or acquisitions.

Wynn said it earned $51.1 million, or 49 cents per share, in the quarter ending Sept. 30, up from $44.7 million, or 41 cents per share, a year ago. Revenue rose nearly 18 percent to $769.2 million, including a jump of nearly 37 percent at the Wynn Macau in China to $474.8 million.

Analysts surveyed by Thomson Reuters on average expected earnings per share of 59 cents on revenue of $747 million.

"Our philosophy hasn't changed, it's not going to change. I don't care who owns the stock, who doesn't own the stock, we're running the business for the long haul," chief executive Steve Wynn told investors in a conference call.

"We'll do our best to deal with the ups and downs of the short term roller coaster," Wynn said. "For those of you who own our shares, be of good heart, we'll be OK. For those of you who don't or are short term-thinkers, stay out of the company."

Wynn said the company is not in a hurry to start a new project, given the current economy and two projects it is still developing.

"As far as expansion or growth, for the next 12 or 13 months we've got openings and expansions," Wynn said. "That'll be good enough for me."

Rising revenue in Macau, the only place where gambling is legal in China, offset declines in gambling and non-gambling revenues at the Wynn Las Vegas.

There, casino revenues were $143 million, compared to $150 million for the third quarter of 2007, while non-gambling revenues were down 1.1 percent to $190.9.

Overall casino revenue rose 24 percent during the quarter. Room revenue dropped 2.5 percent, and food and beverage revenue rose 6.2 percent. Entertainment, retail and other revenue rose 13 percent.

Wynn is preparing to open its newest resort, the 2,000-room Encore, on Dec. 22, and said it had roughly $500 million left to spend on the project.

Wynn said the priority for the company looking forward would be to make sure the $2.3 billion property runs smoothly during its first six months. The company began accepting reservations for the hotel on Monday.

Matt Maddox, chief financial officer for Wynn, said the company had roughly $2.2 billion in total liquidity, with $1.2 billion excess cash on hand after allotting the $500 million left to spend on Encore in Las Vegas and an additional $500 million the company has left to spend on its $700 million Macau Encore project.

The Wynn Macau project, scheduled to open in the first quarter of 2010, is expected to include 600 rooms and suites along with casino, restaurant, retail and lounge space.

Wynn stocks rose $5.45, or 13.3 percent, to close at $46.50 on Thursday. They rose another 30 cents in after-hours trading.

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