Wynn Resorts Ltd. (NASDAQ:WYNN) posted first-quarter profit that topped analysts’ estimate. But it missed revenue as weakness in Macau continued.
The casino operator reported overall profit of $75.2 million, or 74 cents a share, for the first quarter, compared with a loss of $44.6 million, or 44 cents a share, a year earlier. Excluding certain item, profit was $1.07 a share, up from 70 cents a share a year earlier. Analysts surveyed by Zacks had consensus estimate of $0.83 cents a share.
Revenue fell 9 percent to $997.7 million in the quarter ended March. Analysts had projected revenue of $1.007 billion in the period.
The overall revenue is divided into two parts, revenue from Macau operations and revenue from Las Vegas operations. Net income from Macau operations fell 14 percent to $608.2 million, while the company reported a 0.7 percent of revenue increase from Las Vegas operation.
Weakness in Macau still continued. But this is the smallest quarterly decline in revenue from Macau since the third quarter of 2014 when Chinese government conducted anti-graft corruption actions. VIP table games turnover dropped 21% to $13.47 billion. Revenue per available room fell 5% to $307.
In April, Wynn announced a new expansion plan in Las Vegas, planning to build a lake resort behind its two Las Vegas casinos, which includes a 38-acre lagoon attraction, a 1,000 room hotel tower, a small casino, restaurants, nightlife and meetings and convention space. The company is also developing another casino in Everett, Mass., north of Boston.
Wynn shares rose 1.2 percent to $96.69 at 1:15 p.m. in New York.