Wynn Resort
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by: Gene Koprowski.
Wynn Resorts appears to be 'on a roll' once more. The casino operator reported this week that its second-quarter earnings "more than tripled compared to last year" due to powerful revenue growth at the Las Vegas-based casino operator's Macau property.
 
Earnings for the quarter ended June 30 soared to $272 million, or $2.42 per share, from $89.6 million, or 82 cents per share, in 2007.

Profit rose 23.3 percent. It totaled $124.3 million, or $1.11 per share, compared with $100.8 million, or 92 cents per share, in the second quarter last year.

Revenue rose 20 percent to $825.2 million, propelled by a 50 percent revenue increase at Wynn Macau. At Wynn Las Vegas, net casino revenue

Analysts forecast earnings of 93 cents per share on revenue of $828.1 million.
In a note to investors, Jake Fuller, an analyst with Thomas Weisel Partners, said the company's earnings got another boost from lighter-than-expected interest expense.

Earlier this month, Wynn had warned investors about the shortfall in operating income for its Las Vegas property so the results did not surprise investors.

Wynn said then that the property also booked a lower-than-n ormal hold percentage, which is the amount won the casino as a percentage of the total amount gambled.


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The Las Vegas property's revenue per available room, or revpar, fell 3 percent to $292 during the period as occupancy slipped. "Revpar" is considered a key gauge of a hospitality company's performance. Travel to Las Vegas was down during the quarter, due to higher gasoline prices. But gas prices have dropped steeply during the last two weeks, likely a factor that will reverse that short-term trend.

"We're not sure what it will mean, but it's part of the passing parade and the current short-term environment," Wynn said in a conference call with reporters. "I don't think — as an operator, there's not a hell of a lot you do about it. You're not going to change your way of doing business."

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