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Wynn Las Vegas reports 34-day results
Thursday, June 2, 2005 · Last updated 2:23 p.m. PT
By ADAM GOLDMAN
ASSOCIATED PRESS WRITER
LAS VEGAS -- Wynn Las Vegas, the city's most expensive hotel-casino, generated gambling revenue of $64.3 million in its first 34 days of operation, exceeding some analysts' expectations.
Gaming revenue at the $2.7 billion resort came close to a full-quarter estimate of $68.2 million, Steven Kent, a gambling analyst with Goldman Sachs, said in an investor's note Thursday. Gross non-gambling revenue for the 34 days, which includes $15.4 million of complimentary revenues, was in excess of $76.6 million.
The news could help buoy parent company's Wynn Resorts Ltd.'s stock, which fell in the weeks leading up to the resort's opening after a gambling analyst downgraded it and another expressed concern about the gaming market in Las Vegas.
Shares of Wynn Resorts rose $3.45, or 6.9 percent, to close at $53.40 in trading Thursday on the Nasdaq Stock Market.
The average daily room rate at the resort, which opened April 28, was $308, with occupancy averaging 91 percent, Wynn Resorts said.
The room rate was "slightly ahead of our $300 estimate, but occupancy of 91 percent was below our 98 percent estimate," Kent said.
"We are delighted with our first full month of operations, but we are reminded that opening a resort of this caliber and this scope is a daunting challenge," Steve Wynn, chairman and chief executive officer of Wynn Resorts, said in a statement.
Along with the resort, Wynn is building Encore, an adjacent $1.4 billion hotel-casino scheduled to open in 2008. He is also erecting a $700 million casino in Macau and is bidding on one in Singapore.
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