Wynn Resorts' 3Q profit falls on expenses

LAS VEGAS -- Wynn Resorts Ltd.'s profit fell nearly 12 percent in the third quarter, as a debt-related loss boosted expenses for the casino operator.

Even so, the company's adjusted earnings exceeded Wall Street's expectations, and its shares surged by nearly 4 percent in extended trading after the results were released Wednesday.

The latest quarterly report card showed Wynn's casino resorts in Las Vegas benefited from a stronger gambling business, as its table games and slot machines generating more revenue. Business was weaker at its resort in the Asian gambling center of Macau.

Revenue at Wynn's Las Vegas operations rose nearly 12 percent from a year earlier to $388 million, buoyed by a 22.6 percent jump in net casino revenue.

Room revenue rose 1.4 percent to $91 million, with the average daily rate growing nearly 2 percent to $244 million.

Occupancy at Wynn and Encore Las Vegas fell to 85.7 percent from 88 percent a year earlier. While revenue per available room, or revpar, declined 1.2 percent to $209.

At Wynn Macau, revenue fell 4.3 percent to $910.5 million during the quarter, as receipts from the casino's table games and slot machines slowed from a year ago. The company also had fewer slot machines, on average, than a year earlier.

The average daily rate at the casino resort fell 2.5 percent to $307, as occupancy inched up to 94.2 percent from 93.7 percent.

Revpar also declined, falling 2 percent to $289.

Wynn noted that lower retail sales led to a 5.3 percent drop in non-casino revenues.

All told, the Las Vegas company reported its net income fell to $112 million, or $1.11 per share, for the three months ended Sept. 30. That compares with net income of $127.1 million, or $1.01 per share, a year earlier.

Excluding one-time items, including $19.7 million in deferred financing costs and fees for amending credit agreements, Wynn's earnings amounted to $1.48 per share. Analysts polled by FactSet expected $1.32 per share.

Revenue was flat at $1.3 billion, in line with Wall Street expectations.

Meanwhile, the company's board declared an $8 cash dividend, which includes a 50-cent per share quarterly dividend, to be paid on Nov. 20 to shareholders of record on Nov. 7. Wynn said it plans to boost its quarterly dividend to $1 next year.

Wynn's shares ended regular trading down $2.09 at $112.29. The stock gained $4.01, or 3.6 percent, to $116.30 in after-hours trading.