Inside Asian Gaming

INSIDE ASIAN GAMING | November 2010 46 Briefs International Briefs Wynn Resorts reports Q3 results Wynn Resorts’ net revenues for the third quarter of 2010 were US$1.0 billion, compared to $773.1 million in the third quarter of 2009, driven by a 49.7% increase in net revenues at Wynn Macau. Adjusted property Ebitda (earnings before interest, taxes, depreciation and amortization) increased $76.3 million to $274.5 in Q3 2010, compared to $198.2 million in the year-ago quarter. On a US GAAP (Generally Accepted Accounting Principles) basis, net loss attributable to Wynn Resorts for the third quarter of 2010 was US$33.5 million, compared to a net income of $34.2 million in the third quarter of 2009. The decline was primarily attributable to a loss on extinguishment of debt of $64.2 million. Adjusted net income in the third quarter of 2010 was $48.7 million, compared to an adjusted net income of $39.9 million in the third quarter of 2009. Wynn Resorts announced that its Board of Directors has approved a cash dividend of US$8 per share on its outstanding common stock, while theWynnMacau board approved a HK$0.76 per share dividend. In addition, the Wynn Macau board determined the Company will consider paying recurring dividends, with a target yield of 1-3% annually, and believes this will allow it to maintain sufficient liquidity to achieve its Cotai growth strategy. At Wynn Macau, Q3 2010 net revenues were US$671.4 million, compared to $448.5 million in the same quarter of 2009. Ebitda in the September 2010 quarter was $198.0 million, up 54.5% from $128.2 million in the third quarter of 2009. Table games turnover in the VIP segment was US$21.7 billion in Q3 2010, a 53.9% increase from $14.1 billion in the year-ago quarter. Table games drop in the mass market category was US$605.1 million during the period, a 20.6% increase from $501.8 million in the third quarter of 2009. Including the Encore extension that opened in April, Wynn Macau currently have 461 tables (233 VIP tables, 217 mass market tables and 11 poker tables) and 1,130 slot machines. Net revenues at Wynn Resorts’ Las Vegas operations in Q3 2010 were US$334.5 million, 3.1% higher than in the third quarter of 2009. Property Ebitda of $76.5 million was up 9.3% versus the $70.0 million generated in the comparable period in 2009, primarily due to higher non-gaming revenues. Net casino revenues in Q3 2010 were $138.4 million, down 3.9% from Q3 2009. LVS achieves record revenues in Q3 Las Vegas Sands Corp (LVS) announced its results for Q3 2010. The company reported record revenues of US$1.91 billion, an increase of 67.3%comparedto$1.14billionintheyear-agoperiod.Thecompany’s adjusted net income increased to $265.2 million, compared to $20.1 million in the same quarter of 2009. The third quarter’s exceptional performance resulted from strong revenue growth and increases in operational efficiency in Macau and outstanding results at Marina Bay Sands in Singapore. LVS owns and operates Venetian Resort Hotel Casino, Palazzo Resort Hotel Casino and Sands Expo and Convention Center in Las Vegas, and the Sands Macao, Venetian Macao Resort Hotel, the Four Seasons Hotel Macao, Cotai Strip and the Plaza Casino in Macau. Bargain sales of casinos in Nevada and AC The Las Vegas Review- Journal reported on several bargain sales of casino properties in Nevada and Atlantic City. Among the examples it cited was M Resort, which cost US$1 billion, but was essentially acquired by Penn National Gaming, which picked up the property’s US$860 million debt load for $230.5 million (or 23 cents on the dollar). MGM Resorts International’s 50% stake in Atlantic City’s Borgata was sold to a yet-to-be-named buyer for just above US$250 million— almost half the figure analysts expected. CityCenter, which had an US$8.5 billion budget, now has an equity value of $2.65 billion. That means MGM Resorts’ 50% share is worth $1.325 billion. As companies like MGM Resorts (US$13 billion in long-term debt) and Harrah’s Entertainment ($19 billion) deal with liquidity issues, the report postulates it could be a buyer’s market. The Borgata deal is key to MGM Resorts’ debt-payment plans. The casino operator is counting on the US$250 million. Another $114 million sitting in trust will go to the company once the sale is final. MGM Resorts could be thankful it found a buyer for Borgata. Atlantic City suffered its 25th straight month of declining gaming revenues in September, with an 11.6% year on year drop. Borgata’s gaming revenues fell 16.1% in the month. Revenues at the casino are down 7.7% for the first nine months of 2010. Analysts do not Encore at Wynn Macau The SugarHouse Casino Four Seasons Hotel Macao