Another quarter is done, and it was another blowout for Wynn Resorts
Revenue increased 32.4% to $1.37 billion, adjusted property EBITDA increased 58.9%, to $447.0 million, and after an adjustment, earnings per share jumped from $0.52 last year to $1.60 in the latest quarter.
But while Wynn was happily taking money from customers in the casino, it was literally giving it away to a charity in Macau.
Giving away your money
The big ding on Wynn's earnings was a $135 million donation made to the University of Macau Development Foundation. The payments will be made over 10 years, but this is a big charitable contribution Steve Wynn decided to make on behalf of shareholders. It left me scratching my head a bit.
Expecting better luck
One interesting note from the press release yesterday was Wynn's increased expectations from what it will win in the mass-market category in Macau. Wynn is increasing mass-market table game win percentage expectations to 26%-28%, from 21%-23%. For a look inside exactly what this means, I explain gambling odds here, but in short, you can take this as customers sitting at tables longer and losing more than Wynn had expected previously.
For a comparison, in Las Vegas, Wynn expects to win 21% to 24% of table game drop. Don't let anyone tell you Asian gamblers aren't a far better gambling market than Americans.
Las Vegas leads the way?
For the second straight quarter, Wynn saw improving results in Las Vegas, where property EBITDA increased to $132.7 million from just $65.1 million a year ago. MGM Resorts
Foolish bottom line
With only one company reporting, it's hard to say that Las Vegas is back, but so far, so good for the city. I would still put my bets on companies with the most possible exposure to Asia. Las Vegas Sands