Wynn Resorts Limited (WYNN) today reported third-quarter earnings of 28 cents per share. Adjusted earnings were 33 cents. The results are ahead of the Zacks Consensus Estimate of 14 cents. The company had earned 49 cents (adjusted earnings of 62 cents) in the year-ago quarter. Net revenues were $773.1 million compared to $769.2 million in the prior-year period. Results were driven by the opening of Encore at Wynn Las Vegas in Dec. 2008. However, due to a challenging economic environment, consumers continued to curb their gambling. Casino revenues in Las Vegas were flat year-over-year, while non-casino revenues increased 18% from the prior-year period, driven primarily by higher hotel and food and beverage revenues from Encore. Though hotel revenues were up as a result of the addition of 2,034 suites at Encore, we note that average daily rate, occupancy levels and revenue per available room (RevPAR) ...

On Monday, Fitch Ratings raised its outlook for Wynn Resorts Ltd. (WYNN) to positive from stable subsequent to the completion of the company’s Hong Kong initial public offering (IPO) for its Macau unit. The ratings also include an improved operating outlook following the relaxation of travel restrictions.  Through the Hong Kong IPO, Wynn sold 1.25 billion shares or a 25% stake in its Macau business, which represented Hong Kong's second-biggest haul of the year.  Macau, a former Portuguese colony, is one of the world’s biggest gambling markets. Though the economic slowdown has negatively impacted the revenues of casino operators in the last few quarters, we note that Macau has been posting record revenues. Recently, visa restrictions had been lessened by Beijing to allow mainland tourists to visit Macau once a month rather than twice a year.  In 2008, Macau generated HK$105.6 billion ($13.5 billion) of ...

Wynn Resorts (WYNN) is planning to raise up to $1.6 billion in its Hong Kong initial public offering (IPO) for its Macau unit, which represents an increase from $1.0 billion as previously intended. Wynn intends to offer 1.25 billion shares, representing 25% of the equity in the company's Macau operations. The price range of the offer is HK$8.52–$10.08 per share or US $1.10–$1.30. JP Morgan (JPM), UBS AG (UBS) and Morgan Stanley have been chosen to handle this Hong Kong listing. Wynn Encore Macau, the company’s second resort in Macau, is scheduled to open in the first half of 2010. The company has budgeted around $650 million for the construction of this resort and so far has incurred about half of that construction cost. Las Vegas Sands (LVS), Wynn’s rival, is also planning an IPO of its Macau assets in late November ...