Wynn Resorts 2Q Revenue Rises on Demand from Wealthy Customers

Dow Jones08-05 06:50
 

Wynn Resorts's quarterly revenue rose as the casino operator saw resilient demand from the wealthy customers it caters to.

"We service a very particular customer, and that customer has held up extremely well," Chief Executive Craig Billings said during a call with analysts.

Wynn has been doubling down on its offerings for premium customers lately. The company opened a new members-only club and a high-end steakhouse at its Las Vegas resort last quarter, and opened a revamped Chairman's Club, its highest-tier, invite-only member's club, at its resort in Macau earlier this year.

The company doesn't expect that focus to change, even as some competitors in Las Vegas have pushed more all-inclusive offerings and promotions.

"That's not really our core customer. I think it's helping the market, but we're sticking to what we do best," said Brian Gullbrants, chief operating officer of the company's North America business.

Shares gained 5.4%, to $102.87, in late trading. At market close, shares were down 19% year to date.

Wynn's second-quarter profit came in at $140.1 million, or $1.32 a share, compared with a profit of $66.2 million, or 64 cents a share, a year earlier.

Adjusted earnings per share were $1.24, topping analyst estimates of 99 cents a share according to FactSet.

Revenue rose to $1.86 billion from $1.74 billion, compared with analyst estimates of $1.83 billion.

Casino revenue rose, as did sales from food and beverage. Revenue from rooms and entertainment and retail declined.

By property, sales grew at Wynn Palace, Wynn Macau and the company's Las Vegas operations. Revenue from Encore Boston Harbordeclined.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment