Wynn Resorts on Tuesday said its Wynn Macau casino posted improved total casino revenue in the second quarter, helped by strength on the VIP gaming side – but there was softness in the mass-market operations.
At the same time, the company's Macau Palace property, which opened last August, made a significant contribution to overall results but also was lighter on mass on a sequential basis, falling below some analyst forecasts. Even so, the Wynn Palace produced casino revenue of $372 million in the second quarter, or about 180 percent more than the company's combined Las Vegas operations.
Overall, Wynn's adjusted earnings per share in the quarter were $1.18 per share, up 10 percent from a year ago and ahead of analysts' consensus of $1.16 per share, according to Thomson Reuters. Revenue totaled $1.53 billion, representing a 44 percent jump from a year ago and ahead of the Street's $1.45 billion consensus.
However, investors seemed more concerned with the softness in Macau's mass-market business, which is considered more profitable than the VIP side because there are no commissions.
On the news, Wynn stock lost nearly 4 percent in after-hours trading.
The first question on the earnings conference call was about the mass-market softness in the latest quarter, although Wynn Resorts Chairman and CEO Steve Wynn cautioned analysts that they shouldn't read too much into such short-term trends.
"It's very important that you don't get caught up in the very short-term myopia that your professions demand in many respects," said the casino mogul. "It's the big things that determine the long-range viability of these places."
Added Wynn, "When we look at the numbers that you're looking at...we say the train is on schedule. The future of the company is being built intelligently, with a strong foundation."