Wynn Resorts third quarter profit down 12 percent, ups dividend
LOS ANGELES (Reuters) - Casino operator Wynn Resorts Ltd (WYNN.O) reported third-quarter profit fell by 12 percent to $112 million from a year ago on slower business at its Macau operations.
The Las Vegas-based company also said on Wednesday it would issue an $8 per share dividend and was doubling its quarterly dividend to $1 a share in 2013.
In after-hours trading, the company's stock rose by 3.5 percent to $116.25 a share.
Revenues at its luxury Wynn and Encore hotels and casinos in Las Vegas increased by 11.8 percent, to $388 million, but were not enough to offset the decline in Macau.
The Las Vegas increase was driven by increased table wagering and increased business at its night clubs. Earnings before interest, taxes, depreciation and amortization (EBITDA) at the properties increased by 29.7 percent from a year earlier, to $110.4 million.
The company's much larger Wynn Macau operations reported a 4.3 percent decline in revenues, to $910.5 million, on sharply reduced table play by high-end players. Its average daily rates of $307 at its hotel was 2.5 percent lower than a year earlier.
EBITDA at the Macau operation declined by 1.3% to $292.2 million.
Wynn lately has also been occupied with a bitter high-profile legal dispute with former investor and partner Kazuo Okada, which resulted in Wynn forcibly redeeming Okada's 20 percent stake in the company at a 20 percent discount.
The company said adjusted net income of $1.48 a share was the result of 25 million fewer shares, largely due to the redeemed shares.
Gambling revenue in Macau in September rose 12 percent from a year earlier, according to Macau government data, picking up from August but still well below the pace of previous years.
Wynn has started work on its new $4 billion Cotai project in Macau, pegged to include 2,000 hotel rooms, 600 gaming tables, 10 restaurants, shops, a spa, meeting rooms and a nightclub, set to open in 2015.
(Reporting By Susan Zeidler; Editing by Tim Dobbyn)