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Published Thursday, April 29, 2010 | 1:49 p.m.
Updated Thursday, April 29, 2010 | 4:34 p.m.
Wynn Resorts Financial Information
| 1Q 2010 | 1Q 2009 | % Change | 4Q 2009 | |
|---|---|---|---|---|
| Revenue | $908.9 million | $740 million | 22.8% | $809.3 million |
| Net income | $27 million | $33.8 million | N/A | ($5.2 million) |
| Net income per share | 22 cents | (30 cents) | N/A | (4 cents) |
Wynn Resorts swung to a profit during the first quarter of 2010 as revenue increased in Las Vegas and Macau.
The Las Vegas-based company reported net income of $27 million, or 22 cents per share, in the first quarter of 2010 compared to a net loss of $33.8 million, or 30 cents per share, in the same period of 2009.
Net revenue for the first quarter of 2010 was $908.9 million, compared to $740 million in the first quarter of 2009. The revenue increase was driven by a 31.6 percent increase at Wynn Macau and a 9.3 percent increase from Las Vegas operations, the company said in today’s earning report.
“The numbers, I think, speak for themselves. I really have very little to add to that except that the first quarter numbers do not include any contribution from Encore at Wynn Macau. We’re looking forward to it contributing to the overall impact of our operation in Macau,” Wynn Resort Chairman and Chief Executive Steve Wynn said during the company’s first quarter conference call.
Wynn Resorts’ Las Vegas operations generated EBITDA of $60.3 million in the first quarter of 2010, compared to $43.9 million in the first quarter of 2009. EBITDA is a profitability measure meaning earnings before interest, taxes, depreciation and amortization.
Net casino revenue in the first quarter of 2010 was $139.5 million, up 19 percent from the first quarter of 2009.
Hotel revenue at Wynn Las Vegas and Encore was down about 9 percent to $77.6 million during the quarter, versus $85.1 million in the first quarter of 2009. Average daily room rates also fell about 9 percent, from $222 to $203 during the year-over-year period. Occupancy at Wynn and Encore was flat at about 90 percent.
Food and beverage revenue in Las Vegas decreased slightly, by 1 percent, to $95.9 million in the quarter. Retail revenue fell about 3 percent, to $18.9 million, during the year-over-year period.
Entertainment revenue increased by 42 percent to $18.2 million from the first quarter of 2009 primarily due to Garth Brooks performances and increased revenue from Le Rêve, the company said in the report.
Wynn reaffirmed a May 28 opening day for the Encore Beach Club and Surrender nightclub at Encore Las Vegas. The $68 million project has replaced the Encore porte-cochere. It will also include outdoor seating for Switch restaurant, updates to Society Café and a new entrance plaza. Wynn said he expects the additions will have a significant effect on walk-in traffic.
In Macau, revenue was $590.6 million in the first quarter of 2010, compared to $448.7 million in the same period of 2009. Wynn Macau’s EBIDTA grew to $181.6 million from $114.6 million a year earlier.
The Encore Macau grand opening fireworks illuminate the night sky above Wynn Macau on April 21, 2010.
The company opened Encore at Wynn Macau, a 414-room hotel and casino, on April 21. The hotel includes restaurants, luxury shopping and gaming space with 61 table games and 69 slot machines.
“We believe that Macau Encore is the loveliest urban hotel in the world,” Wynn said.
During the Encore at Wynn Macau opening, Wynn commented during an interview that he was considering moving his headquarters to Macau. Wynn elaborated on that comment during Thursday’s call.
“We are going to include a new headquarters in the Cotai project and I intend to begin the process by switching my own schedule and my CFO’s in almost the immediate future,” Wynn said. “It really first amounts to an allocation of our time and our focus. I don’t intend to uproot everyone who works for me here. They’ve got lives and homes.”
Wynn said his Cotai resort would not open until at least 2014 after a table game cap expires in 2013. The cap was imposed by the local government to control an increase in table games over the next three years. Wynn said he hopes to build a destination resort on his 51-acre parcel.
“What I believe is missing from Cotai is a legitimate destination resort that has the one thing in China that is so scarce, and that is space. I want to build a hotel in Cotai and I have designed one that has made use of our 51-acre parcel,” Wynn said.
Wynn said the hotel will include gardens, waterfalls and extensive grounds.
Wynn has been spotted with his team at several regional casino sites around the country, sparking rumors that he pulled out of the Philadelphia Foxwoods project to invest in another regional casino.
“We were just curious,” Wynn said. “You should read nothing into it. There is no agenda.”
Wynn said his next project will be in China, unless he gets involved in Massachusetts, where lawmakers approved a bill to license two resort-style casinos earlier this month.
Wynn abruptly pulled out of the stalled Foxwoods project earlier this month just days after meeting with the Philadelphia mayor and Pennsylvania Gaming Control Board. Under the proposed agreement, Wynn would have taken a 51 percent stake in the project, while a partnership including the Connecticut Indian tribe that owns Foxwoods Casino in Mashantucket, Conn., and local investors would have had the remaining shares.
“The gaming opportunities in Pennsylvania were interesting and stimulating, but the particular deal we were in, a deal in which we were a participant in someone else’s company, became unattractive to us at the last minute. We backed out of a deal more than we backed out of Pennsylvania.”
Wynn said he would consider bidding on the Foxwoods project license if it came up for bid again.
Say want you will about Steve-O, but he knows how to mack a buck, period.
Good news.
Must be a typo. No way Stevie could make any money with Obama and Reid in power.
Whatever, Mr. Wynn is a business genius for sure, however he seems to be abandoning us here in Nevada and moving his headquarters to China. This does not sit well with most of us here, as Las Vegas afforded Mr. Wynn with the opportunities which made him a billionaire, at least he can give back a little and help our struggling economy somehow with one of his brilliant promotional moves to regenerate the ailing strip.
It's clear that Macau is where he's making his money (Sheldon too) and the EBITDA percentage is huge there compared with Las Vegas operations. Can't blame him too much for going where the money is.
More importantly, the potential growth for gaming in Asia is so much greater than in LV. Economically and demographically that's where the future is. Vegas overbuilt itself on corporate greed and too-easy credit and will be paying for that foolishness for years to come.
Wynn has the right to move his headquarters if he wants to, and IU think it is a great strategic move for him. In Obama's comments just today, he wants to "cap" what individuals can make. He actually said, that some people have just made enough money... What a jacka$$, I would move too if I were Wynn!!!
Just another Fellow Traveller that should be blacklisted.
He sounds serious about moving...but at the last minuet he might change his mind....I will be very surprised if he really makes this move....
Steve Wynn is obviously astute and his moves no doubt make good sense.
He'll do what he has to do that make sense for the enterprise.
Way to go Steve!
Notice how the regular gloom and doomers such as stevem are absent? The Wynn profit must totally depress them.
Btw, contrary to a sarcastic post above, Wynn is making money in SPITE of Obama, and Reid's piece by piece destruction of the free enterprise system...
BTW, I read it like he is not uprooting his whole management team to China, but rather having "a" headquarters there and having "some" of his team there.
Maybe some go back and forth as well over time.
He'll make it all work for the benefit of the concern.
To some extent JMO.
Every dime Steve made was a dime another casino lost. There has been no increase in overall business. It looks like MGM has more clubs to close.
How dare he make money! Has he not read the comments stating he has no financial/business sense and is destined to drag Vegas further into the pit of despair. Clearly he did not read the memo regarding those with any business sense have no right to succeed in Vegas.
Good job Steve. Keep the success rolling.
Harrah's has the water up to its head. The company prepares a sale of the Rio. And Wynn is making most of its profits in Macau, and not in Las Vegas. The Encore is a nice extra amenity but definetely a casino that can't impossibly be profitable. Most of the time it's almost empty in there. Although, it's becautiful. Empty tables and slotmachines make no money, that's "a fact".
From Switzerland
Let's not go overboard on the genius rating. He and the other gaming gurus (Loveman, Shelton) completely missed the recession and Wynn blamed it on Obama. He gets an A+ for shifty. When you come up with a business model concerned with shopping and high end eating instead of gaming you are off track.
Bore-Us....You constantly complain about and criticize Las Vegas yet you fly here every chance you get. Next time, go to Macau.
logic_should-rule? you are talking to me?
let me tell you this, dude: I go to Vegas whenever I like. And I wager my money here whenever I like. I decide when I will go to Macau, which will be soon enough. Until then , I will challenge my skill with the skill of the "tough Vegas pros" in the poker rooms. Last time, to my biggest sorry, I have to announce that I could not lose. Sorry: I give Vegas another chance to take my money. This fall. No bad feelings, buddy, but I stop my Vegas vacation when I think it's over there. Not before.
Greetings
Boris
Sorry. Can't help it. But Wynn is a turncoat - capitalism not with standing. Whore.
Does this profit statistic mean Mr. Steve Wynn is not moving to Macau now?
Or was that lame press release he made recently just another attack against the President Obama administration, who will soon tax him appropriately, taxes he has escaped paying for the past 30 years under various Republican administrations?
hoolooogoo
The "big dividend" were one-time shots. The next dividend according my broker info will be due on May/10, with a 25 cents dividend. I don't know if this is a quarter-annual dividend or what, but the yield is shown as 1.13 per cent or so. Therefore, it must be quarter-annually. Still, this doesn't quite look like a big dividend to me. I rather believe that the big dividends that were paid out-of-term last year were as a consequence of money needed for him, Steve himself and his wife, for the divorce. They both are huge stockholders and therefore paying huge dividends is mainly of their own interest.
If you are after nice dividens, here are a few solid stocks I could recommend to you:
- Ares Capital (quarter annualy), paying over 5 per cent
- Westshore Terminal
- Roger Sugar
I am not acting as a broker, neither on commission. It's May, and this is the main dividend month of most companies world wide. Therefore, it's always a good idea to keep your extra bucks invested in some solid company and not have it sit in your bank account :)
Greetings from Switzerland
Hi Boris. This isn't a slam against you because you may be a very bright guy but I have to say this for the protection of the naive libs that seem to frequent this site. DO NOT TAKE STOCK ADVICE FROM SOMEONE ON AN INTERNET MESSAGE BOARD. Boris, I'm not saying your advice isn't good but libs are typically naive and ignorant when it comes to money and business. I don't want to see anyone lose money they may not have. One more time for the libs: DO NOT TAKE STOCK ADVICE FROM SOMEONE ON AN INTERNET MESSAGE BOARD.
Neiman1 is right: every dime Wynn gains is a dime another casino loses. One has to wonder just how much longer some of the casinos, shopping malls, etc...can keep it all going, because the money must be drying up as fast as the water supply. What will Las Vegas look like in just a year from now, or two years?
blake, I was bringing this up to emphasize the fact that the Wynn dividend isn't actually so great. In fact, it was only good 2 or 3 times in the past, but the standard dividend they pay isn't good. Ok, it's still better than no dividend at all (BYD for instance), but I wouldn't say that Wynn is paying a great dividend if they aren't.
Greetings from Switzerland