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Wynn Resorts Reports its Two Las Vegas Casinos Lost $17.2 million
in Second Quarter, More Than Double From the Same Quarter Last Year

By Howard Stutz, Las Vegas Review-JournalMcClatchy-Tribune Regional News

July 21, 2010--Wynn Resorts Ltd. told investors this morning its two Strip resorts had an operating loss of $17.2 million in the second quarter, more than double the loss reported in the same quarter a year ago.

The company preannounced a portion of its financial results for the three-month period that ended June 30, saying revenues grew during the quarter at Wynn Las Vegas and Encore, but cash flow declined due to higher internal costs.

Wynn plans to release its complete quarterly results on July 29.

Wynn said revenues at the Strip resorts are expected to be $318 million, an increase of 1.7 percent compared to the same quarter a year ago.

Adjusted property cash flow, however, was expected to be $65.1 million, compared with $75.5 million a year ago.

In a statement, the company said the decline in cash flow, described as earnings before income taxes, depreciation and amortization, was due to "higher health care and other employee benefit costs, customer acquisition expenses as well as repairs and maintenance costs to preserve the property's overall quality."

The results led to an operating loss of $17.2 million in the quarter, compared to an operating loss of $8.3 million in 2009's second quarter.

During the quarter, the amount customers wagered table games at the two casinos was $485.9 million, a decline of 1.8 percent from a year ago. Also, hold percentage on table games declined modestly.

Revenues from slot machines during the same period were $41.1 million, a decline of 1.8 percent.

The two resorts had an average daily hotel room rate of $197 for the quarter, compared with $218 in the same period a year ago. Occupancy grew to 92.6 percent compared with 86.6 percent a year ago, which generated revenue per available room of $182, a decline of 3.2 percent.

In separate statement, Wynn Resorts said the Las Vegas unit plans to raise $1.32 billion through a private offering of first mortgage notes due 2020. It also has started a cash tender offer for any and all of the $1.32 billion notes due 2014.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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Copyright (c) 2010, Las Vegas Review-Journal

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