LAS VEGAS (AP) — Casino operator Wynn Resorts Ltd. reports on its second quarter after the markets close Monday, and the results are expected to show Asian gambling markets solidifying as the world's biggest and most profitable.
WHAT TO WATCH FOR: Evidence that gambling is recovering in Las Vegas, as company officials say, after deep struggles the past three years.
Casino companies doing a large share of their business in China — like Wynn, which gets about two-thirds of its revenue there — have fared best during and since the recession. Wynn Resorts, led by billionaire CEO Steve Wynn, saw its revenue jump in the Chinese gambling enclave of Macau after its newest casino, Encore at Wynn Macau, opened there in April 2010.
For the first quarter, the company reported $865.7 million in revenue from Macau and $394.6 million from its two casinos in Las Vegas. The company operates four casinos in all.
Moody's Investors Service last month said casino companies with more exposure in Asia, like Wynn and Las Vegas Sands Corp., will fare better in the near term than their competitors.
WHY IT MATTERS: Results in Las Vegas will be indicative of how consumers, especially luxury customers, are spending discretionary income. Boosts in gambling and tourism are good news for Nevada's economy and for a company that depends on people being willing to spend.
WHAT'S EXPECTED: Analysts expect adjusted earnings of $1.01 per share and revenue of $1.26 billion, according to Fact Set.
LAST YEAR'S QUARTER: The Las Vegas company reported net income of 42 cents per share on revenue of $1 billion for the second quarter.
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