Wynn Resorts has reported a weaker third quarter, missing Wall Street forecasts as revenue fell in Las Vegas and Macau, although some analysts remain positive about the casino operator because of its forthcoming resort in the United Arab Emirates.

The Las Vegas-based company reported operating revenue of $1.69 billion for the three months to 30 September, down 7.9 per cent from $1.83 billion in the same period last year. Net income attributable to Wynn Resorts fell to $17.3 million from $88.3 million, while diluted earnings per share dropped to 17 cents from 85 cents.

On an adjusted basis, earnings were 33 cents per share, compared with 86 cents a year earlier. Analysts had expected earnings of 59 cents per share on revenue of more than $1.7 billion, according to Casino.org. Adjusted property EBITDAR, a company measure of property-level operating performance, fell by $105.9 million to $464.2 million, from $570.1 million a year earlier.

Chief executive Craig Billings said the results showed “strong operational discipline” from teams in each region. He said Wynn Las Vegas and its Macau properties had seen healthy demand despite slower market conditions, while Las Vegas had also been affected by a table games hold rate outside the expected range. In Boston, he said the team had managed through a strike that began in early September.

Las Vegas operations reported revenue of $575.2 million, down 7.4 per cent from $621.0 million a year earlier. Adjusted property EBITDAR in Las Vegas fell 21.9 per cent to $158.8 million. The table games win percentage was 18.9 per cent, below the property’s expected range of 22 per cent to 26 per cent and below the 23.0 per cent recorded a year earlier.

In Macau, Wynn Palace reported revenue of $583.8 million, down 8.1 per cent, while its adjusted property EBITDAR fell to $165.8 million from $200.3 million. Wynn Macau reported revenue of $335.4 million, down 8.2 per cent, with adjusted property EBITDAR of $89.5 million, compared with $108.0 million a year earlier. Encore Boston Harbor reported revenue of $194.7 million, down 8.1 per cent, and adjusted property EBITDAR of $50.1 million, down from $58.4 million.

Despite the disappointing quarter, Wynn shares pointed higher in midday trading after the results, as some analysts highlighted the longer-term opportunity. Stifel analyst Steven Wieczynski wrote that Wynn’s premium focus in Las Vegas remained overlooked and undervalued, and described the shares as the most interesting and misunderstood name in his gaming coverage.

Attention is increasingly turning to Wynn Al Marjan Island, the resort under construction in the UAE through a joint venture in which Wynn holds a 40 per cent stake. The company contributed $62.2 million in cash to the project during the third quarter, bringing its total cash contributions to $1.12 billion. The resort is still expected to open in September 2027.

Wynn said its remaining equity needs for the UAE project were $465 million to $590 million, slightly below its earlier forecast. Jefferies analyst David Katz said the project remained on track for its planned opening and noted that there were several routes to success depending on the mix of customers. Stifel estimated that the project could be worth $19 to $25 per share in today’s dollars, value it said was largely excluded from current trading levels.

On the company’s conference call, Billings said Wynn had started to consider plans for unused real estate in Las Vegas, property that by some estimates is worth $1 billion or more. “We’ve started to doodle and think about” what could be built there, he said, adding that a project linked to the existing Wynn and Encore resorts could be built at a lower all-in cost than a freestanding integrated resort.

Billings also discussed Texas, where Democrats swept the major statewide offices in Tuesday’s midterm elections, raising hopes among some in the industry that casino expansion could eventually be considered there. He described Texas as a large market that was not yet open to casinos and said Wynn would consider opportunities there, adding that the company already had a strong customer database from Texas in Las Vegas.

Wynn also announced a quarterly cash dividend of 25 cents per share, payable on 30 November to shareholders on record on 16 November. During the quarter it repurchased 627,475 shares at an average price of $92.61, for a total cost of $58.1 million. It had $268.0 million of repurchase authority remaining at the end of September. Cash and cash equivalents totalled $1.64 billion, excluding $150.2 million of short-term investments held by Wynn Macau.