VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
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IN BUSINESS GAMING WYNN REPORTS REVENUE INCREASES, HINTS AT ENCORE REDESIGN By Richard N. Velotta senior staff writer Executives at Wynn Resorts on Feb. 2 reported earnings higher than analysts expected, announced breaking a 4-year-old casino win record and hinted about redesigning the traffic flow at the company's Encore property. The company showed improvements in net revenue at both its Las Vegas and Macau properties, with virtually all categories up in Las Vegas. That includes room revenue, which showed a double- digit percentage increase compared with the fourth quarter of 2010. Wynn reported earnings of $190.5 million, $1.52 a share, on revenue of $1.34 billion for the quarter that ended Dec. 31. That compared with earnings of $114.2 million, 91 cents a share, on revenue of $1.24 billion. The average of a survey of 23 analysts earlier projected earnings of $1.29. In a conference call with analysts, Wynn Resorts chairman and CEO Steve Wynn said the company's 2011 casino win of $776 million was a state record for a single Nevada licensee, beating the previous high $764 million, set by Wynn in 2007. Casino win was just one of several categories where the Las Vegas property excelled. For the fourth quarter, casino revenue was $145.8 million, 4.7 percent ahead of the same period in 2010, and table game drop was $594.5 million compared with $564.8 million a year earlier. The casino's 23.3 percent win percentage was within the company's expectation of between 21 and 24 percent and higher than the 22.5 percent reported in the fourth quarter of 2010. The slot machine handle of $660.1 million was 5.4 percent below the 2010 quarter, but the net win was up 0.9 percent due to a better hold in 2011. On the noncasino side, revenue was up 6.8 percent to $246.6 million, with room revenue up 11.7 percent to $85.3 million. The average daily room rate was up 6.3 percent to $250 a night, but occupancy was just 79.1 percent compared with 81.8 percent the prior year. During the fourth quarter of 2011, 1 percent of the property's rooms could not be used because of renovations. The company said 9 percent of the rooms were unavailable due to renovations in the fourth quarter of 2010. In other categories, food and beverage revenue was up 5.3 percent to $103.2 million, retail sales were up 1.7 percent to $22.3 million and entertainment revenue climbed 2.5 percent to $20.7 | 13 FEBRUARY 2012 | " City National provided the loan that enabled us to renovate our dilapidated facilities." – Jonathan Moscone Artistic Director, California Shakespeare Theater million. Meanwhile, Macau had a net revenue increase of 9.1 percent over the fourth quarter of 2010, to $995.5 million. Casino win beat company expectations in both the VIP and mass markets, and the company had higher average room and occupancy rates compared with the fourth quarter of 2010. Macau occupancy was at 94.2 percent for the quarter, and the average room rate was $322 in U.S. dollars. Other noncasino revenue streams were up 14.6 percent to $106 million with strong performances in all categories. For the year, revenue increased 14.2 percent in Las Vegas and 31.2 percent in Macau for a combined 25.9 percent revenue increase for the company to $5.27 billion. Imagine where you could be in 4 years. Help your business grow with an exclusive 4% for 4 years secured business loan from City National. Restructure your existing debt or get the working capital you need to expand for the future, at our low fixed rate. Exclusive 4% for 4 Years Business Loan Offer* n n n n Fixed rate of 4% Loan term up to 4 years Loan amount between $100,000 and $500,000 No closing costs or upfront loan fees Take advantage of this offer by contacting us at (702) 997-1841 or visit cnb.com/bizloans. * Loan subject to approval by City National Bank ("CNB"). Offer available only in the states of California, Georgia, Nevada, New York and Tennessee. This offer is not available for CNB lines of credit, Small Business Administration guaranteed loans, or any renewals, extensions, modifications or refinances of existing CNB loans. A completed written application on CNB's Business Loan Application form, as well as financial and other information requested by CNB, must be received by, March 31, 2012. If loan is approved, all loan payments must be automatically debited from a CNB business checking or savings account and funding must occur by May 4, 2012. Loan must be secured by business assets (other than real estate) or specific equipment, as determined by CNB. Additional terms and conditions apply. Ask us for details. Member FDIC 9