A suite at Wynn's Encore in Las Vegas
Wynn Resorts announced its second quarter earnings today, with profits reaching $25.5 million for the period ending June 30. Compared to the same quarter in 2008, when the company earned $272 million, the profits dropped more than 90 percent, yet Steve Wynn himself, along with investors, are not that concerned. They're happy that the results were still a profit.
A decline in gaming revenue, perhaps spurred by the economic downturn, in addition to spending on the December opening of the $2.3 billion Encore had the greatest impact on the earnings. Last year's second quarter earnings were boosted by a deferred tax benefit that resulted in more than half of the company's profits.
Although quarterly revenue declined to $723.3 million from $825.2 million (about 12 percent), investors were not disturbed as Wynn Resorts shares gained more than 14 percent in value on the Nasdaq National Market on Thursday.
Investors have much to bank on, as Wynn plans completions of the $650 million Encore at Wynn Macau, which is expected to open in summer of 2010. On a conference call with investors and analysts, Wynn spent the majority of the time lauding the opening of the new property next year.