WYNN Resort Takes a Hit After Drop In Third Quarter Profit (WYNN)

WYNN Resorts (NASDAQ: WYNN) took a major hit today, dropping 9.5% after they announce a drop of 33% of third quarter profits. Though their revenue was higher than expected at $773.1 million, revenues were eroded by the high costs of operations for their Encore Casino.

Their newly opened casino, Encore has also hurt winnings per table because vacationers tend to play across their two casinos in Las Vegas. In Las Vegas, Wynn’s EBITDA rose 12% to $198.2 millions without their Encore Casino contributing to EBITDA. In Macau, property EBITDA rose 21% to $128.2 million.

Management has disclosed that they plan to continue building a second Casino in Macau. Wynn has already raised $1.87 billion in an initial public offering in Hong Kong.