(Updates with baccarat decline in first paragraph, analyst comment in fourth.)
Oct. 19 (Bloomberg) -- Wynn Resorts Ltd., operator of the Wynn and Encore casinos, reported third-quarter profit that missed analysts’ estimates as Las Vegas baccarat revenue declined. The shares fell in extended trading.
Net income totaled $127.1 million, or $1.01 a share, compared with a loss of $33.5 million, or 27 cents, a year earlier, Las Vegas-based Wynn said today in a statement. Profit excluding some items was $1.05 a share, missing the $1.19 average of 24 analysts’ estimates compiled by Bloomberg.
Las Vegas has had an uneven recovery from a record two-year drop in gambling and conventions, with casino gambling revenue on the Las Vegas Strip falling 8.7 percent in August on a drop in baccarat. Wynn missed the analysts’ third-quarter estimates because of the annual difference in baccarat winnings, said Carlo Santarelli, director of gaming and lodging research at Deutsche Bank Securities Inc.
“Last year, they had a win percentage of 22.8 percent, and this year it was 18.3 percent in the third quarter,” Santarelli said in a phone interview.
Wynn’s net casino revenue in Las Vegas declined 8.3 percent, according to the statement today. Macau, where Wynn generates more than 70 percent of its sales, is experiencing rapid growth. Wynn opened Encore Macau in April 2010, doubling its presence in the world’s largest casino market.
Third-quarter cash flow, or adjusted property earnings before interest, taxes, depreciation and amortization, jumped 39 percent to $381.1 million, beating the $373.2 million estimate of analysts.
Wynn Resorts fell as much as 9.2 percent to $120.33 in extended trading after results came out. The stock retreated 5.4 percent to $130.27 at the close in New York. Wynn Macau Ltd. fell 4.1 percent to HK$19.56 in Hong Kong.
Overall, Wynn’s revenue rose 29 percent to $1.3 billion, meeting analysts’ projections. In Macau, sales jumped 42 percent. Gambling in that market this year has surged 46 percent through September.
Wynn’s revenue increased 3.7 percent in Las Vegas, the biggest U.S. gambling market. The company said its Las Vegas average daily room rate rose 14 percent to $240 in the third quarter. Occupancy rose to 88.3 percent from 87.8 percent a year earlier.
(Wynn Resorts began a conference call at 4:30 p.m. New York time that may be heard at www.wynnresorts.com.)
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