July 21, 2010 / 1:49 PM / 9 years ago

UPDATE 1-Wynn sees weaker Las Vegas results in 2nd quarter

* Preliminary results show wider loss for Vegas assets

* Higher costs cited

* Private offering of notes set

* Shares up 0.7 percent

ATLANTA, July 21 (Reuters) - Wynn Resorts Ltd (WYNN.O) announced weaker preliminary results for its Las Vegas properties for the second quarter, citing higher worker benefit costs and other expenses.

The hotel and casino resort operator said on Wednesday that net revenue at its Wynn Las Vegas and Encore properties rose 1.7 percent to $318 million during the second quarter from a year earlier, based on initial results. The operating loss for the Las Vegas assets widened to $17.2 million from $8.3 million.

Adjusted property earnings before interest, taxes, depreciation and amortization and other costs came to $65.1 million for the second quarter in Las Vegas, down from $75.5 million for the 2009 period. Wynn noted higher costs for employee healthcare and other benefits, customer acquisition expenses and maintenance costs.

Occupancy at the Wynn Las Vegas rose to 92.6 percent from 86.6 percent a year earlier, but revenue per available room was down 3.2 percent as the average daily rate fell.

Wynn Resorts, which also operates a resort in Macau, said it would release final second-quarter results on July 29.

Separately, Wynn Resorts said its Las Vegas unit planned a private offering of $1.32 billion of first mortgage notes due 2020. It said it would use proceeds to fund a tender offer it has made for notes that mature in 2014.

Shares of Wynn Resorts were up 0.7 percent at $83.87 in morning trading. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below