By Jasmine Li
Shares of Wynn Resorts fell after it posted worse-than-expected results in the third quarter, echoing its Las Vegas strip neighbors MGM Resorts and Caesars Entertainment.
The company's stock dropped 9.3% Tuesday, making Wynn the second-worst performer on the S&P 500 of the day. Shares closed at $86.72, their lowest close since Sept. 25.
The gambling giant on Monday reported revenue of $1.69 billion for the quarter, up from $1.67 billion a year ago. Its Las Vegas operations saw an $11.8 million drop in sales, while its Macau and Boston businesses gained.
Gaming revenue from the Las Vegas strip has declined for three consecutive months, according to a Nevada Gaming Control Board report last week. Strip revenue in the third quarter was down 7.2% year over year, while the state saw gains overall.
Elsewhere on the strip, MGM Resorts reported a 1% rise in Las Vegas revenue to $2.1 billion, dragged down by a fall in casino revenue. About 30% of the total gaming drop this year can be attributed to baccarat losing favor, CEO William Joseph Hornbuckle said on an earnings call last week.
At Caesars Entertainment, table-hold gaming was the laggard, CEO Thomas Reeg told analysts on a call. The company posted a 1.3% decline in Vegas revenue to $1.06 billion, but its digital gambling segment saw big gains, with sales rising 41% to $303 million.
"Trees don't grow to the sky, but demand from the high-end consumer remains stable," Wynn CEO Craig Billings said on an earnings call Monday.
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(END) Dow Jones Newswires
November 05, 2024 17:19 ET (22:19 GMT)
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