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Casino operator Wynn Resorts Ltd. posted better than expected quarterly earnings Tuesday, but a downbeat outlook ruffeled investors and the shares fell 10%. On a conference call with analysts and investors, Wynn executives said bookings for Las Vegas conventions and meetings remain weak and and high end domestic business is still MIA (missing-in-action). Wynn earlier this month raised about US$1.8B via a Hong Kong listing of shares in its Wynn Macau Ltd unit, reported net income of US$34.2M, or 28 cents per diluted share, compared with US$51.2M, or 49 cents per share, in Y 2008. Adjusted for property charges and other items, the Las Vegas-based company posted a profit of 33 cents per share, which beat the average analyst estimate of 15 cents a share, according to Thomson Reuters. Wynn, run by casino mogul Steve Wynn, operates two casino-resorts in Las Vegas and one in Macau, the only place in China where gambling is legal. The company’s second Macau resort, Encore Macau, is scheduled to open April 1.

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Wynn Resorts Ltd. plans to raise as much as US$1.63% in a Hong Kong initial public offering of its Macau casino assets. The US gambling company founded by Stephen Wynn plans to sell 1.25B shares for between HK$8.52 and HK$10.08 apiece. The sale would represent about 25% of the Macau business, they said. Wynn’s profit has fallen for the past two years as a global economic slowdown hurt travel and spending at its Las Vegas casinos and hotels. In contrast, net income at Wynn’s Macau operations rose 48% last year as gambling revenue in the only Chinese region where casinos are legal climbed. Global investors are likely to be drawn to the IPO, as it’s the first foreign casino operator to be listed in Hong Kong. JPMorgan Chase & Co., Morgan Stanley and UBS AG were hired to manage the sale, and will begin offering the stock from tomorrow. The price is due to be fixed on Oct. 2. Shares of Macau casino operators listed in Hong Kong have jumped this year. Read more

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