By Deena Beasley
LOS ANGELES, Feb 24 (Reuters) - Wynn Resorts Ltd on Tuesday said it swung to a loss in the fourth quarter as the recession hurt business in Las Vegas and the company recorded a tax expense, sending its shares down 19 percent in extended trade.
Wynn, which said earlier this month it would cut salaries and benefits in Las Vegas to avoid layoffs, said its Las Vegas Strip net casino revenue fell 43 percent in the quarter, while hotel room revenue fell 14 percent.
'The Las Vegas numbers were very bad,' said Susquehanna Financial analyst Robert LaFleur. 'It looks to be a very difficult environment for the foreseeable future.'
The company, created by casino mogul Steve Wynn, reported a net loss of $159.6 million, or $1.49 per share, compared with net income of $65.5 million, or 57 cents per share, a year earlier.
Casino operators have struggled as recession-hit consumers cut back on extras like travel at the same time businesses are cutting back on conventions and meetings, looking to trim travel costs and avoid perceptions of frivolous spending.
'There is no good news. Business is tough in Las Vegas,' Wynn said on a conference call with analysts and investors. 'People are being more cautious, when they win they are playing for shorter periods of time.'
Excluding one-time items such as the $98.8 million tax expense, Wynn Resorts earned 13 cents a share in the quarter, which fell far short of the 41 cents a share forecast by analysts, according to Reuters Estimates.
Despite the opening in late December of Encore, the company's second Las Vegas resort, Wynn Resorts' net revenue fell 14 percent to $614.3 million, which also fell short of the average analyst estimate of $696.4 million.
Wynn said its Macau casino resort generated adjusted earnings before interest taxes depreciation and amortization of $95 million in the fourth quarter, about 5 percent less than a year earlier.
'The (Macau) market is softer, but Wynn seems to be holding its own over there,' LaFleur said.
He also noted the Wynn continues to have 'a strong balance sheet,' unlike some of its competitors.
The company is slated to open a second Macau casino, the $700 million Wynn Macau, in 2010.
Shares of Wynn Resorts, which have fallen nearly 80 percent since August, rose 11 percent to close at $25.80 on Nasdaq, but were trading at $21.00 after-hours.
(Reporting by Deena Beasley; Editing by Gary Hill, Bernard Orr) Keywords: WYNNRESORTS/ (deena.beasley@thomsonreuters.com; 1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LOS ANGELES, Feb 24 (Reuters) - Wynn Resorts Ltd on Tuesday said it swung to a loss in the fourth quarter as the recession hurt business in Las Vegas and the company recorded a tax expense, sending its shares down 19 percent in extended trade.
Wynn, which said earlier this month it would cut salaries and benefits in Las Vegas to avoid layoffs, said its Las Vegas Strip net casino revenue fell 43 percent in the quarter, while hotel room revenue fell 14 percent.
'The Las Vegas numbers were very bad,' said Susquehanna Financial analyst Robert LaFleur. 'It looks to be a very difficult environment for the foreseeable future.'
The company, created by casino mogul Steve Wynn, reported a net loss of $159.6 million, or $1.49 per share, compared with net income of $65.5 million, or 57 cents per share, a year earlier.
Casino operators have struggled as recession-hit consumers cut back on extras like travel at the same time businesses are cutting back on conventions and meetings, looking to trim travel costs and avoid perceptions of frivolous spending.
'There is no good news. Business is tough in Las Vegas,' Wynn said on a conference call with analysts and investors. 'People are being more cautious, when they win they are playing for shorter periods of time.'
Excluding one-time items such as the $98.8 million tax expense, Wynn Resorts earned 13 cents a share in the quarter, which fell far short of the 41 cents a share forecast by analysts, according to Reuters Estimates.
Despite the opening in late December of Encore, the company's second Las Vegas resort, Wynn Resorts' net revenue fell 14 percent to $614.3 million, which also fell short of the average analyst estimate of $696.4 million.
Wynn said its Macau casino resort generated adjusted earnings before interest taxes depreciation and amortization of $95 million in the fourth quarter, about 5 percent less than a year earlier.
'The (Macau) market is softer, but Wynn seems to be holding its own over there,' LaFleur said.
He also noted the Wynn continues to have 'a strong balance sheet,' unlike some of its competitors.
The company is slated to open a second Macau casino, the $700 million Wynn Macau, in 2010.
Shares of Wynn Resorts, which have fallen nearly 80 percent since August, rose 11 percent to close at $25.80 on Nasdaq, but were trading at $21.00 after-hours.
(Reporting by Deena Beasley; Editing by Gary Hill, Bernard Orr) Keywords: WYNNRESORTS/ (deena.beasley@thomsonreuters.com; 1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.