Two Way Hard Three | Las Vegas Casino & Design Blog

July 30, 2009

Wynn Resorts Posts Second Quarter Income Plunge

Posted by Hunter

Las Vegas based Wynn Resorts reported their second quarter results this morning. Net revenues were below many analysts expectations but EBITDA was stronger than expected.

The press release is here:
http://phx.corporate-ir.net/phoenix.zhtml?c=132059&p=irol-newsArticle&ID=1314279&highlight=

Occupancy in Las Vegas is off almost 10 points from the year ago quarter and ADR is down to just over $200 as many recent visitors can attest to. REVPAR in Las Vegas was off over 35% to $188, though over 2,000 additional rooms are included in the figures for this quarter.

The stock has been trading up $5/share as of this writing.

Update: Fixed the poorly worded headline.


Categories: Business of Gaming, Las Vegas Strip, Macau Casinos and Hotels, Wynn Resorts
Tags: lasvegas, macau, vegas, wynn


Comments

Read archived comments (11 so far)
July 30, 2009 9:28 AM Posted by John

The Sun has a slightly more sensational way of reporting it:

http://www.lasvegassun.com/news/2009/jul/30/wynn-resorts-reports-net-income-loss/

July 30, 2009 9:32 AM Posted by Hunter

Yeah, bottom line numbers were *dramatically* lower, though I'm sure that's what all the analysts were expecting since business is bad.

July 30, 2009 10:52 AM Posted by Mark

Am I dreaming or don't the numbers reflect a net profit for the second quarter?

July 30, 2009 10:57 AM Posted by Hunter

No, you're correct. Let me fix my poorly worded headline.

July 30, 2009 11:00 AM Posted by Charlie

Err... WRONG.

Wynn actually posted a modest net PROFIT, thus beating the analysts' expectations of a loss.

Of course, this is considerably lower than last year's numbers... but gee... a profit is a profit is a profit...

Don't you people read the articles before posting them???

July 30, 2009 11:06 AM Posted by Hunter

Yes, this person read the release, the Union Gaming research note and also listened to the call. This person also posted a bad headline, which has been corrected.

July 30, 2009 11:24 AM Posted by Brian Fey

Nothing here shocks me. I'm pretty disappointed in Encore's performance. And I am a bit taken back, buy just how much business in Macau has been hit. To say that business in Macau is down substantially, would not be an exaggeration.

July 30, 2009 6:37 PM Posted by LeoNYC

I too am not shocked. It seems that one day XS will be more profitable then the casino at Encore. I was at Wynn last weekend and the XS was packed (I mean PACKED). My guess was there were more people at the club for the 6-7 hours it was open then the 24-hour casinos at Wynn and Encore combined. Plus, people at Encore pay for the (expensive) drinks + bottle service etc etc. If Vegas don't get out of the recession soon, in a few years it will be transformed into the capital of nightclubs. BTW, Encore is a ghost city.

July 31, 2009 7:50 PM Posted by detroit1051

WYNN Call transcript:
http://seekingalpha.com/article/153015-wynn-resorts-ltd-q2-2009-earnings-call-transcript?page=-1

July 31, 2009 8:47 PM Posted by Phil

All I can think off reading that transcript of Steve Wynn's comments was this article.

http://www.lasvegasweekly.com/news/2008/nov/20/elaine-wynn-embracing-change/

July 31, 2009 8:51 PM Posted by Jinx

XS will do fine and carry profit until one of the other properties redoes their club and makes it the new 'hot'. Pure is about due for a remodel anyway.