Wynn Resorts Ltd posted a profit on Monday that topped Wall Street targets on strong results out of Las Vegas and China's gambling haven of Macau, and the company's shares jumped more than 10 percent in extended trading.
The company created by casino mogul Steve Wynn reported second-quarter net income of $89.6 million, or 82 cents per share, compared with a net loss of $20.1 million, or 20 cents per share, in the year-ago period when it booked preopening expenses.
Adjusted net income for the second quarter was 92 cents per share, dwarfing analysts' average estimate of 53 cents per share, according to Reuters Estimates.
Net revenue jumped to $687.5 million from $273.4 million.
Las Vegas net casino revenues in the second quarter of 2007 rose 40 percent to $159.4 million, helped by casino wins, higher revenue per available room and food and beverage sales.
Wynn Macau, which opened on September 6, 2006, generated net revenues after discounts and commissions of $352.5 million. That was up from $304.6 million in the prior quarter, helped by a higher than targeted 3.3 percent win percentage at VIP table games.
In 2006, Macau overtook Las Vegas as the world's No. 1 gambling haven by revenue.
The former Portuguese colony that is China's only legal gambling haven in 2002 invited outside casino operators to set up shop after local billionaire Stanley Ho's four-decade monopoly expired.
Las Vegas Sands Corp. opened its first Macau casino in 2004 and is preparing for the debut later this month of the Venetian Macau, the city's biggest casino to date.
In its most recent quarter, Las Vegas Sands saw its Macau casino revenue rise nearly 22 percent to $373.5 million and analysts are closely watching how the Venetian Macau will alter the landscape.
It's going to be a game changer, Majestic Research analyst Matthew Jacob said.
The interesting thing will be to see how market share shifts and how the market grows in total (particularly on the top end), he said.
Wynn executives said in a conference call with analysts that they remain concerned about visa restrictions aimed at curbing day trips to Macau, but added the restrictions had little impact on the recently completed quarter.
Wynn Macau has more than 200 table games and more than 400 slot machines in a 110,000 square-foot casino. The company in September plans to open a second phase that will more than double the casino's gambling space.
Back in the United States, Wynn said the project budget for its Encore development on 20 acres on the Las Vegas Strip is now estimated at $2.2 billion. That project is set to open in early 2009.
Wynn shares, which closed up $6.33, or 6.3 percent, at $107.39 on Nasdaq, jumped to $118.50 in extended trading.
At the end of regular trade on Monday, Wynn shares had risen more than 14 percent so far this year, compared with Las Vegas Sands' stock gain of 11 percent.
(Reporting by Lisa Baertlein)