Casino operator Wynn Resorts Ltd. said today it lost $159.6 million in the fourth quarter of 2008 after paying $98.8 million in taxes.
The loss Wynn reported after the market closed compares with net income of $65.5 million in the fourth quarter of 2007. Wynn said it lost $1.49 per basic share during the last three months of 2008 compared with income of 58 cents per share a year earlier.
The company, which owns casinos in Las Vegas and the Chinese gambling enclave of Macau, said the large tax expense resulted from a company review of its ability to realize future tax benefits.
For the full year, the Las Vegas-based company says its net income was $210.2 million, or $1.94 per basic share, compared with $258.1 million, or $2.43 per share in 2007.
Wynn says its gambling revenue for 2008 was $479.7 million, 25.3 percent less than in 2007. Non-gambling revenue was $776.3 million in 2008, down 3.7 percent from 2007.
The company said in a conference call with investors that it learned in the fourth quarter that it could not keep its room rates high and expect its Las Vegas hotels to remain full.
The company, which opened the $2.3 billion Encore Las Vegas resort on Dec. 22, said the opening did not significantly affect results for the fourth quarter. Wynn Resorts said it had $202 million in outstanding costs for the project.
Wynn Resorts said it plans to open the $700 million Encore Macau casino in 2010, with 400 luxury suites and four villas. The company said it planned to fund the project with cash on hand and revenue from Wynn Macau.
The company said it had $1.1 billion cash on hand at the end of 2008 and $4.3 billion in total debt.