A Disappointed Wynn Resorts Macau Reports Second-Quarter Profit Fall as Revenues Continue Downward Spiral
Wynn Resorts Macau operations have left the operator with disappointment for its year-on-year losses to June 30th. The operator’s financial net revenues for the second quarter is down from $1.4 billion to $1 billion. The casino operator has stressed that its disappointment from its Las Vegas losses isn’t as big as what they are experiencing with its Macau business.
The operators adjusted property earnings before amortization, depreciation and tax fell to 36.8% which amounted to a little over $295 million. Operating income decreased as well for the second quarter from $341.3 million to $169.1 million.
Gross gaming revenues have seen its double digit downfalls since June of last year. The market continues to see struggles with government anti-corruption initiatives with tighter restrictions in place such as the smoking ban and other political struggles.
Wynn has reported its table game results in Macau under two different categories. The mass market and VIP segment. Turnover with the VIP segment was down 41.1% compared to the previous year which is safe to say the blame can be put on the VIP market in Macau. The numbers for the mass market segment is down 16.5% amounting to $208.6 million.
Wynn’s Cotai Land project is expected to cost a little over $4 billion. The resort is expected to be open the later part of March 2016. Hopes or projections is that this new property will help weigh out declining revenues that the operator is experiencing this past year.
“It took us two years to plan it. It’s taken four years to build it, a big, long project conceived by people with experience, and I think will be a powerful addition to the Macau market, whatever size that Macau market may be at the moment,” Chief Executive Stephen Alan Wynn said in a conference call with analysts last quarter.
“We’ve never had a failure in this industry. We’ve never hit a real bump. We don’t do layoffs,” Mr. Wynn said in the call in April.