Wynn Q3 earnings beat forecasts despite Macau revenue fall; hikes dividend

Wynn Resorts Q3 earnings beat estimates and revenues were in line, despite a significant decline in VIP revenue in Macau.

Net revenues for the quarter were $1.37 billion, down from $1.39 billion a year ago and in line with forecasts.

“The decline was the result of a 5.6 percent net revenue decrease from our Macau operations, partially offset by a 9.0 percent increase in net revenues from our Las Vegas operations, the company said.

Adjusted property EBITDA was $458 million, up 5.3 percent.

On a GAAP basis, net income attributable to Wynn Resorts was $191.4 million, or $1.88 per diluted share, compared to $182.0 million, or $1.79 per diluted share, a year ago.

Adjusted net income was $199.2 million, or $1.95 per diluted share compared to $187.0 million, or $1.84 per diluted share, a year ago and beating estimates for $1.84.

The company also said it was boosting its dividend by 20 percent to $1.50 a share and approved an additional cash dividend of $1.00 a share. The total $2.50 payout will be paid on Nov. 25th to shareholders on record as of Nov. 12th.

In Macau, revenues dropped 5.6 percent to $942.3 million, while adjusted property EBITDA fell 1.1 percent to $325.5 million.

Table games turnover in the VIP segment was $25.1 billion for the third quarter of 2014, a 17.4 percent decrease from $30.3 billion in the third quarter of 2013. Table games win in the mass market segment increased by 36.4 percent to $327.2 million.

Wynn is the second major operator with operations in Macau to post Q3 results following earnings from Las Vegas Sands. The results are being closely watched for indications of the underlying health of the business in Macau after top line revenue fell for four months in a row from June and is expected to show a drop of about 21 percent in October.

Wynn confirmed it expects to open its resort on Cotai in the first half of 2016. In Q3, it invest about approximately $301.1 million in the Cotai project, taking the total investment to date to $1.4 billion.

 

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