Wynn Macau Ltd reported a 7.1 percent drop in second quarter revenue, to US$907.6 million (MOP7.26 billion), according to a filing today to the Hong Kong Stock Exchange. The company’s profits were however up by 83 percent, at US$220 million. But the 2011 result included a US$107 million charge for the company’s donation to the University of Macau Development Foundation. Wynn Macau’s parent company, Wynn Resorts Ltd, saw its second-quarter results missing analysts’ estimates. The company’s revenue fell 8.3 percent to US$1.25 billion, below estimates of US$1.33 billion. Net income rose 13 percent to US$138.1 million from US$122 million a year earlier, the company said. Commenting on Wynn Macau’s results, analysts at Union Gaming Research led by Bill Lerner said both the company’s VIP and mass segments were down, “likely a reflection of new in-market competition and softer macro trends.” The analysts added that “until VIP customers have a better sense of who will be in power in the People’s Republic of China come year-end, and until there is more clarity on the global economy”, VIP volumes are not expected to increase significantly.
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