Wynn Resorts, Limited (WYNN) Earnings: Macau Results Fall Behind Competitors

Better-than-expected win percentage helped results, but so did a 14.3% jump in table game play and a 14.9% jump in slot play. This compares to a 13.7% drop in table play at Las Vegas Sands’ strip resorts and a 0.7% decline in slot play.

MGM Resorts and Caesars Entertainment Corp (NASDAQ:CZR) both have a lot riding on Las Vegas, which has recovered slowly in 2012, and it will be interesting to see what they report. Both room revenue and food and beverage was mixed for the two companies that have reported, and they don’t give a lot of indication of what MGM or Caesars will report.

Foolish bottom line
The results for Wynn out of Macau are disappointing, and I don’t expect them to markedly improve until 2016 when the company’s new Cotai resort is complete. Until then, I think flat revenue and EBITDA for Wynn as a whole would be a reasonable expectation, along the lines with what the past year has been. For long-term investors, the thesis is that the Cotai resort can double both revenue and EBITDA for the whole company and that’s worth hanging on for.

In the near term, Las Vegas Sands will continue to take share because of growth on Cotai, and so will Melco Crown.

The article Wynn Earnings: Macau Results Fall Behind Competitors originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.