Wynn Profit Slides on Macau Weakness
October 15 2015 - 6:20PM
Dow Jones News
Wynn Resorts Ltd. said Thursday its third-quarter earnings
dropped 61% as revenue from its Macau operations sunk 38%,
continuing the woes of casino operators in the Chinese
territory.
Both the top and bottom line fell short of Wall Street's
expectations. Shares, which have lost half their value so far this
year, declined 8.8% to $67.27 after hours.
Despite gambling revenue in Macau being on a downward spiral for
more than a year, Wynn Chief Executive Stephen Alan Wynn has
remained bullish on China's semiautonomous region.
Las Vegas-based Wynn said Thursday revenue from its Macau
operations in the latest period fell 38% to $585.1 million. Average
daily room rates there shrunk 3.1% to $317, while occupancy fell to
95.9% from 98.5% a year earlier. Revenue per available room, a
closely watched industry metric, fell 5.6% to $304.
Meanwhile, overall revenue from its Las Vegas operations fell
3.9% to $411.2 million. But noncasino revenue rose 1.9% from the
year-before period to $303.6 million, the company said. That figure
technically includes free hotel stays and other offerings to
customers. Room revenue in Las Vegas edged up 0.2% as average daily
rates rose 3% to $275 and revenue per available room improved 2.1%
to $243. Occupancy was down from the prior-year period at
88.3%.
Overall, Wynn reported a profit of $73.8 million, or 73 cents a
share, down from $191.4 million, or $1.88, a year earlier.
Excluding items such as pre-opening costs, earnings fell to 86
cents from $1.95.
Net revenue, which excludes promotional allowances, dropped 30%
to $996.3 million.
Analysts polled by Thomson Reuters had forecast earnings of 88
cents on $1.03 billion in revenue.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 15, 2015 18:05 ET (22:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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