LAS VEGAS-As expected, Wynn Resorts Ltd. on Tuesday reported a drop in its third quarter profit on lower occupancy, room rate and gambling trends. Despite significant growth in its Las Vegas operations in the past year with the opening of a new casino-resort, its casino revenue there was flat compared to the same year-earlier period and non-casino revenue [hotel, food and beverage, retail, entertainment] was up by only 17.9%.

Working with 60% more casino floor area in Las Vegas than it had in the third quarter of 2008, net casino revenue from its Las Vegas operations in the third quarter of 2009 remained flat at $144 million, with gross revenue from table games declining 2.4% to $531 million and slot machine “handle” essentially unchanged at $850.3 million.

Working with 75% [2,034] more hotel rooms and a dozen more restaurants than it had in the third quarter of 2008, gross non-casino revenues for the quarter were $225.0 million, a 17.9% increase from the third quarter of 2008. Food and beverage turned in the best performance, increasing 29.8% from the same year-earlier period to $96.8 million.

Despite the huge increase in hotel units, room revenue in the third quarter of 2009 increased by just 17.7% from the same year-earlier period to $76.9 million. Its occupancy rate is down only 12 percentage points – to 83.9% from 96.1% — but its average daily room rate is down by approximately 23% to $210 [from $272] and its revenue per available room is down 32.6% to $176 [from $261].

Wynn’s overall operations in Las Vegas generated adjusted property EBITDA of $70.0 million (with a 21.6% EBITDA margin on net revenue), which was flat when compared to the $70.1 million generated in the third quarter of 2008 due to the additional costs associated with the operation of Encore. Revenues at Wynn Las Vegas were up 10.2%.

Net revenues from its casino-resort in Macau fell 5.5% from the same year-earlier period to $448.5 while adjusted property EBITDA increased by 20.6% to $128.2 million. Occupancy at its 600-room hotel there was 89.2%, compared to 86.2% in the same year-earlier period, while its average daily room rate fell to $263 from $272 and its revenue per available room rose slightly to $235 from $234.

Sometime during the first half of 2010 Wynn Resorts will open Encore at Wynn Macau which, like in Las Vegas, will be a fully-integrated resort with its own casino, hotel rooms, restaurants and entertainment. The $650-million development will include 400 luxury suites and four villas, 61 table games, 95 slot machines, food and beverage outlets and retail amenities.

Wynn Resorts chief executive Steve Wynn on the company’s quarterly conference call said the company is on pace in 2009 “to equal or beat” its 2008 results in both markets. That said, company executives added that in Las Vegas bookings for conventions and meetings remain weak along with the flow of wealthy Americans with money to burn, while Macau seems much more stable.

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