Wynn Resorts' Second Quarter Gambling Earnings Increase
Wynn Resorts is just like any other US gaming company these days, trying to find their way out of the economic hole that was developed during the 2008 economic recession. Wynn has stayed the most profitable gaming stock in the US, but has experienced the same problems that other companies have seen in their revenue stream.
For the second quarter of 2012, Wynn rebounded nicely from the same period in 2011. Wynn Resorts saw revenue increase to $138.1 million, up from the $122 million in the second quarter of last year. The revenue increase did not, however, tell the entire picture of the profitability for the quarter.
A $107.5 million charge relating to the decline value of charitable contributions caused the overall revenue figure for the company to drop from last year. Wynn was also hurt by the first decline in Macau gaming revenue in three years.
Macau has become the top gaming destination in the world over the past several years. Macau first surpassed New Jersey, and then toppled the giant, Nevada. In the past three years, Macau revenue has increased as much as 75% in a given month. The average revenue increase was always in double digits for the three year period.
Last year, Macau officials and casino owners decided to slow the growth of the gaming industry by halting any new licensing. The existing casinos agreed that Macau needed to diversify their revenue stream. Over the year since, gamblers continued to flock to the Macau casinos, and it has caused many analysts to raise their expectations for companies associated with the Macau market.
Wynn Resorts remains one of the top gaming companies in the world in terms of overall stock price. At over $150 a share, Wynn easily is the top US gaming stock, and with Steve Wynn, the companies' founder, exploring the possibilities in other areas of the world, analysts expect that Wynn stock will remain profitable for the foreseeable future.
July 17, 2012
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com