Wynn Macau reports 27 percent revenue decrease in Y15Q4

Thursday 11th of February 2016

Wynn Resorts Ltd’s Macau operations have reported net revenue for Y15Q4 at US$555.7 million, a 27 percent decrease from the $761.2 million generated in the same period in 2014, according to a recent press release from the casino operator.

The net revenue decrease from its Macau operations was cited as a main reason for the net revenue decline for the company as a whole, at $946.9 million compared to $1.1 billion in the fourth quarter of 2014. Net profit for the company as a whole came in at $104.1 million in Q4, compared to $122.4 million in the same period in 2014. Macau operations reported a with a 43.7 percent decrease in EBITDA to $708.6 million.

Macau operations reported a 36.9 percent decrease in VIP table games turnover in the fourth quarter, at $13 billion. The average number of VIP tables decreased to 192 units from 244 units in the quarter. Table drop in the mass market segment was $1.2 billion in the fourth quarter of 2015, down 10.9 percent from the 2014 fourth quarter. Table games win in the mass market segment decreased by 8.2 percent to $228.6 million in the fourth quarter of 2015. Total non-casino revenues at the Macau properties decreased 21.2 percent during the quarter to $75.6 million.

For the full year of 2015 net revenue was 4,075.9 million, down 25 percent from $5,433.7 million in 2014 and adjusted property EBITDA declined 33.1 percent to $1,185.8 million in 2015.

Wynn Resorts, Limited also announced today that the company has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on Mar. 2, 2016, to stockholders of record on Feb. 23, 2016.

The company also added that during Y15Q4, the company invested approximately $433.4 million in the Wynn Palace project in Macau, taking the total investment to date to $3.5 billion.

Wynn Palace is a fully integrated resort featuring a 1,700-room hotel, a performance lake, and a wide range of amenities, including meeting, retail, food-and-beverage, and gaming space, in the Cotai area of Macau.

The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is approximately $4.1 billion.

The results have been in line with analyst predictions, who have said the recent stability in gaming revenue along with the upcoming opening of Wynn Palace spells optimism for the casino operator.