Money Matters, Simplified.
Wynn Resorts reports narrowing loss, rising revenue in Q4
by Jaspreet Virk - February 26, 2010 - comments
Though the Las Vegas-based company has been able to narrow loss and strengthen revenue during the fourth quarter, 2009 was a tough year for Wynn Resorts.
Driven by strong results at its gambling enclave in Macau, Las Vegas-based Casino Operator Wynn Resorts Ltd has reported a drop in its net loss for the fourth quarter ended Dec. 31.
Announcing the quarterly earnings, Wynn Resorts stated that soaring revenue in Macau helped it narrow the quarterly loss to $5.2 million.
The net loss is quite small compared to $159.6 million posted by the company in the fourth quarter of 2008.
Analyzing the results
The net revenue for the company stood at $809.3 million, up from $614.3 million reported in the same period a year earlier.
Revenue at Wynn Macau rose 29.6 percent, and revenue from the Las Vegas-based operations soared 35.7 percent compared to corresponding quarter last year.
Company’s operating income of $89 million at gambling enclave in Macau covered operating losses of $56.7 million in Las Vegas.
Wynn Resorts revenue from the casino, and the hotel division was $591.8 million and $92.7 million respectively.
Further, revenue from the food and beverage division stood at $106.1 million.
Tough fiscal year
Though the Las Vegas based company has been able to narrow loss and strengthen revenue during the fourth quarter, 2009 was a tough year for Wynn Resorts.
The company earned just $20.7 million, or 17 cents per share in 2009 compared to $210.5 million in 2008.
Excluding onetime items, Wynn Resorts just earned $10.3 million, or 8 cents per share, missing analysts’ expectations. The analysts had expected profit of 13 cents per share.
Even the full year net income declined to $20.7 million compared to $210.5 million in the previous fiscal year.
2010 outlook bleak
The casino operator is not very optimistic about the upcoming year as it believes that the economy is still bearing the brunt of recession.
In a statement, Steve Wynn, chairman and CEO Wynn Resorts, stated, “I'm afraid to say that I think the outlook for 2010 is very conservative.
"I don't see any major change in the future. I don't see it getting worse per se, but I do think that unless there is some signal from Washington that they can control the deficits, that not only Las Vegas but the country faces dire problems."
After the results were announced, Wynn shares lost 50 cents to conclude at $62.30 in extended trading. The stocks fell 55 cents to $62.80 at the Nasdaq Stock Market.