Wynn Resorts owns and operates Wynn and Encore Las Vegas, Wynn Macau and Wynn Palace, Cotai.
Company: Wynn Resorts. (NASDAQ: WYNN)
Revenue: $1.11 billion, compared to $996.3 million for the third quarter 2015.
Loss: $17.4 million, compared to net income of $96.2 million for the third quarter 2015.
Adjusted net income: $76.2 million for the third quarter of 2016, compared to $87.6 million for the same period of 2015.
Loss per share: $0.17, compared to income per share of $0.95 for the same period one year earlier.
Adjusted net income per share: $0.75 per share compared to $0.86 per share, for the same period of 2015.
What it means: In the conference call to review the third-quarter results with Wynn Resorts executives, gaming investment analysts seemed generally satisfied with the explanations the company offered for the financial results.
Steve Wynn, chairman and CEO, described how Wynn Palace, the company’s second resort in Macau, was facing unexpected challenges because of the construction in the area.
Work on other hotels and a light transit system, he said, is making it difficult for customers to walk, drive or even be bussed to the property.
“What we have is an an anomalous situation where all four sides of our property are currently being enclosed by barricades or construction of some kind or other,” Wynn said. “It’s made access highly encumbered.”
And that construction has slowed down customer growth at the resort. “The ramp-up at Wynn Palace is taking longer than expected,” Wynn President Matt Maddox said.
After a short status check on the Wynn Boston Harbor Project — described as on schedule with steel going up next quarter— Wynn turned to Las Vegas and Wynn Paradise Park.
That’s the tentative name for what will sit on the golf course property the company owns behind the Wynn and the Encore and that stretches back from the Strip to Paradise Road. Some of the initial plans for the property include a man-made lagoon with an island in the middle.
Nongaming revenue has outstripped gaming revenue at all of his properties, and Paradise Park will help his company continue to benefit from that trend, Wynn said.
“One of most interesting things in having this land, the golf course and existing real estate, is that it presents so many options that it's making financial decisions and choices extremely challenging and a lot of fun,” Wynn said.
“With the land, the water and the location, seeking to come to final layout of all of our facility, that puts us in stronger position to be a dominant force in all aspects of nongaming.”